Barclays Maintains an 'Overweight' on Superior Energy Services (SPN); CPX Acquisition: A Bold Move in NAM
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Price: $0.93 --0%
Rating Summary:
11 Buy, 19 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
11 Buy, 19 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on Superior Energy Services (NYSE: SPN) price target of $50.00.
Barclays analyst says, "A Premier Mid-Cap Diversified Services Company to Emerge: We believe Superior is poised to benefit from the unfolding recovery in the Gulf of Mexico, continued elevated demand for coiled tubing services in North America, the exportation of the BJ sand control business internationally, and the emerging market of subsea well interventions. The proposed merger with CPX will likely accelerate growth in NAM. Through the acquisition, SPN will enter the pressure pumping market while adding to its coiled tubing business. Increased cash flows resulting from the merger will be used to augment SPN's international expansion, and we expect solid international growth as the upcycle takes hold. Yesterday's sell-off was a result of concerns about 1) the purchase price, and 2) the timing of the transaction. We believe the sell-off was overdone and in time the price and timing will both be justified."
"Accretive to 2012E EPS: We believe the transaction is $0.30 accretive to our 2012E EPS estimate for Superior of $3.30."
For more ratings news on Superior Energy Services click here and for the rating history of Superior Energy Services click here.
Shares of Superior Energy Services closed at $23.63 yesterday.
Barclays analyst says, "A Premier Mid-Cap Diversified Services Company to Emerge: We believe Superior is poised to benefit from the unfolding recovery in the Gulf of Mexico, continued elevated demand for coiled tubing services in North America, the exportation of the BJ sand control business internationally, and the emerging market of subsea well interventions. The proposed merger with CPX will likely accelerate growth in NAM. Through the acquisition, SPN will enter the pressure pumping market while adding to its coiled tubing business. Increased cash flows resulting from the merger will be used to augment SPN's international expansion, and we expect solid international growth as the upcycle takes hold. Yesterday's sell-off was a result of concerns about 1) the purchase price, and 2) the timing of the transaction. We believe the sell-off was overdone and in time the price and timing will both be justified."
"Accretive to 2012E EPS: We believe the transaction is $0.30 accretive to our 2012E EPS estimate for Superior of $3.30."
For more ratings news on Superior Energy Services click here and for the rating history of Superior Energy Services click here.
Shares of Superior Energy Services closed at $23.63 yesterday.
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