Wells Fargo Starts C&J Energy Services (CJES) at Outperform, Price Target Offers 31% Upside
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Price: $0.31 --0%
Rating Summary:
6 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on shares of C&J Energy Services (NYSE: CJES) with an Outperform rating and $32-$34 valuation range.
C&J Energy has invested heavily into a program designed to more than quadruple its frac fleet from 58,000 HHP at year-end 2010 to 270,000 HHP by year-end 2012. The company is also increasing its Coiled Tubing fleet from 13 units to 18 units during 2011.
The firm believes that the company will earn 80 percent of its revenue in 2011 and 2012 from its hydraulic fracturing business.
A analyst at Wells Fargo comments, "We view CJES as an attractively priced small-cap vehicle to invest in the rapidly growing hydraulic fracturing market. CJES should have over half of its modern frac equipment committed on long-term contracts during 2012 and a debt-free balance sheet, mitigating the macroeconomic risks to the pace of shale development."
For 2011 and 2012, the firm estimates EPS of $2.94 and $3.81 with $730 million and $1.078 billion in revenue.
For more ratings news on C&J Energy Services click here and for the rating history of C&J Energy Services click here.
Shares of C&J Energy Services closed at $24.95 yesterday.
C&J Energy has invested heavily into a program designed to more than quadruple its frac fleet from 58,000 HHP at year-end 2010 to 270,000 HHP by year-end 2012. The company is also increasing its Coiled Tubing fleet from 13 units to 18 units during 2011.
The firm believes that the company will earn 80 percent of its revenue in 2011 and 2012 from its hydraulic fracturing business.
A analyst at Wells Fargo comments, "We view CJES as an attractively priced small-cap vehicle to invest in the rapidly growing hydraulic fracturing market. CJES should have over half of its modern frac equipment committed on long-term contracts during 2012 and a debt-free balance sheet, mitigating the macroeconomic risks to the pace of shale development."
For 2011 and 2012, the firm estimates EPS of $2.94 and $3.81 with $730 million and $1.078 billion in revenue.
For more ratings news on C&J Energy Services click here and for the rating history of C&J Energy Services click here.
Shares of C&J Energy Services closed at $24.95 yesterday.
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