UPDATE: Credit Suisse Upgrades Exterran Holdings (EXH) to Outperform, Price Target Raised ~48%

Credit Suisse upgraded shares of Exterran Holdings (NYSE: EXH) to an Outperform rating from their previous rating of Underperform as they raise their price target on the company to $31 from $21, ~48% increase.

The firm believes that the stage is set for the company to recover from recent hard times, since November of 2010 EXH is down 9% compared to the OSX which is up 25% since then.

Credit Suisse reports that the expected stabilization in the U.S. fleet utilization for the next few quarters and in their costs, an appropriate setting of expectations for non-NAM recovery, expected healthy free cash flow, and a more robust outlook for MLP (EXLP) demand is what is driving their price target up 48%.

They are lowering their 2011 EPS and EBITDA estimates on EXH to ($1.25) and $409 million from ($0.85) and $460 million and their 2012 estimates to ($0.65) $482 million from ($0.35) and $561 million. The firm notes that their Cash Flow From Operations after Maintenance Capex per share of $6.70 for 2011-2012 combined remains significant.

For more ratings news on Exterran Holdings click here and for the rating history of Exterran Holdings click here.

Shares of Exterran Holdings closed at $21.92 yesterday.

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