Dahlman Rose Starts RPC Inc. (RES) at Hold; Fairly Valued amid Concerns on Pressure Pumping Supply
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Price: $7.36 -7.07%
Rating Summary:
6 Buy, 16 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
6 Buy, 16 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Dahlman Rose initiates coverage on RPC Inc. (NYSE: RES) with a Hold.
Dahlman analyst says, "We estimate new equipment can earn a two- to three-year payback, or a 30% to 40% annual return. We believe this should entice players in this fragmented market to continue to order new equipment. While there are likely a few more quarters of strong results ahead, due to shortages of equipment and the accumulated inventory of uncompleted wells, eventually
capacity additions could likely temper momentum. However, with demand continuing to strengthen from a growing US rig count and intense fracture jobs, we believe a meaningful deterioration in the pressure pumping market is unlikely and thus believe a Hold rating is appropriate."
For more ratings news on RPC Inc. click here and for the rating history of RPC Inc. click here.
Shares of RPC Inc. closed at $26.77 yesterday.
Dahlman analyst says, "We estimate new equipment can earn a two- to three-year payback, or a 30% to 40% annual return. We believe this should entice players in this fragmented market to continue to order new equipment. While there are likely a few more quarters of strong results ahead, due to shortages of equipment and the accumulated inventory of uncompleted wells, eventually
capacity additions could likely temper momentum. However, with demand continuing to strengthen from a growing US rig count and intense fracture jobs, we believe a meaningful deterioration in the pressure pumping market is unlikely and thus believe a Hold rating is appropriate."
For more ratings news on RPC Inc. click here and for the rating history of RPC Inc. click here.
Shares of RPC Inc. closed at $26.77 yesterday.
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