FBR Capital reiterates an 'Outperform' on Core Laboratories (CLB); Raising Estimates and Target--With Upside Potential
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Price: $12.45 +0.48%
Rating Summary:
9 Buy, 13 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 13 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Outperform' on Core Laboratories (NYSE: CLB), PT increased from $120 to $122.
FBR analyst says, "We reiterate our rating on CLB and think management is setting the company up to exceed expectations and raise guidance each quarter this year. Based on our proprietary modeling of the company's business relative to industry metrics, we believe that the company's revenue and operating income guidance is both eminently achievable and also likely to be exceeded. As management's guidance is based on growth in the U.S. oil rig count offsetting declines in the natural gas rig count, it is based on more bearish assumptions than our own forecast and expected E&P activity plans. Second, this guidance seems to imply no increase in service intensity given that guided incremental margins are well below historic highs. With increased work being done to understand the more complex liquids-rich plays such as the Eagle Ford, we believe both revenues and incremental margins could exceed, perhaps substantially, management's guidance. We are raising our 2011 EPS estimate to $3.75 from $3.70, further above management's guidance of $3.55 to $3.60, and see upside to perhaps as high as $4.00. (FY12 to $4.70 from $4.55)"
For more ratings news on Core Laboratories click here and for the rating history of Core Laboratories click here.
Shares of Core Laboratories closed at $97.27 yesterday.
FBR analyst says, "We reiterate our rating on CLB and think management is setting the company up to exceed expectations and raise guidance each quarter this year. Based on our proprietary modeling of the company's business relative to industry metrics, we believe that the company's revenue and operating income guidance is both eminently achievable and also likely to be exceeded. As management's guidance is based on growth in the U.S. oil rig count offsetting declines in the natural gas rig count, it is based on more bearish assumptions than our own forecast and expected E&P activity plans. Second, this guidance seems to imply no increase in service intensity given that guided incremental margins are well below historic highs. With increased work being done to understand the more complex liquids-rich plays such as the Eagle Ford, we believe both revenues and incremental margins could exceed, perhaps substantially, management's guidance. We are raising our 2011 EPS estimate to $3.75 from $3.70, further above management's guidance of $3.55 to $3.60, and see upside to perhaps as high as $4.00. (FY12 to $4.70 from $4.55)"
For more ratings news on Core Laboratories click here and for the rating history of Core Laboratories click here.
Shares of Core Laboratories closed at $97.27 yesterday.
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