Jefferies Assumes Coverage on Superior Energy Services (SPN) at Hold; Diverse Exposure to Solid Secular Trends

Jefferies assumes coverage on Superior Energy Services (NYSE: SPN) with a Hold. PT $25.00.

"Although heavily exposed to the drilling & completion side of U.S. activity and thus vulnerable to the volatility inherent in this market, SPN has an attractive breadth of exposure, relative to peers, including large cap peers, that are more heavily pressure pumping related. SPN also brings expertise and 30% of its revenues today outside of NAM onshore. With greater confidence in the US landscape and specifically stability in coiled tubing and fluid handling, we think SPN's mid-cap status and healthy balance sheet adds relative attraction for investors. We think FCF generation potential can exceed $5.50 per share in a strong environment (and little growth capital) and valuation is not unattractive, but we do see relatively more upside in select US services names."

For an analyst ratings summary and ratings history on Superior Energy Services click here. For more ratings news on Superior Energy Services click here.

Shares of Superior Energy Services closed at $22.07 yesterday.

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