Standpoint Research Starts RPC Inc. (RES) at Buy; Oversold Shares Present Opportunity
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Price: $6.36 --0%
Rating Summary:
6 Buy, 18 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
6 Buy, 18 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Standpoint Research initiates coverage on RPC Inc. (NYSE: RES) with a Buy. PT $21.00.
Analyst, Ronnie Moas, said, "With Natural Gas trading at $2.50 and down 50% from June 2011 prices, we want to add a name that will benefit from a rebound there...RPC has been oversold on bad news and concerns with relative strength now in the bottom 10%...This oftentimes is a sign of a near-sighted market over-reaction...RES is a volatile stock and 71% of the shares are controlled by insiders; there has been no selling. Five-year average ROE is 30%..The stock was recently hit on concerns CHK would cut spending by 25%, and CHK is RPC’s biggest customer (accounting for 10%-15% of revenues). In a worst-case scenario, RPC takes a 3%-4% hit to its top-line because of CHK. The company is not too concerned about spending cuts from other customers."
For an analyst ratings summary and ratings history on RPC Inc. click here. For more ratings news on RPC Inc. click here.
Shares of RPC Inc. closed at $14.25 yesterday.
Analyst, Ronnie Moas, said, "With Natural Gas trading at $2.50 and down 50% from June 2011 prices, we want to add a name that will benefit from a rebound there...RPC has been oversold on bad news and concerns with relative strength now in the bottom 10%...This oftentimes is a sign of a near-sighted market over-reaction...RES is a volatile stock and 71% of the shares are controlled by insiders; there has been no selling. Five-year average ROE is 30%..The stock was recently hit on concerns CHK would cut spending by 25%, and CHK is RPC’s biggest customer (accounting for 10%-15% of revenues). In a worst-case scenario, RPC takes a 3%-4% hit to its top-line because of CHK. The company is not too concerned about spending cuts from other customers."
For an analyst ratings summary and ratings history on RPC Inc. click here. For more ratings news on RPC Inc. click here.
Shares of RPC Inc. closed at $14.25 yesterday.
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