Coker Palmer Starts Superior Energy Services (SPN) at $25.00 Fair Value

Coker Palmer initiates coverage on Superior Energy Services (NYSE: SPN) with a Fair Value of $25.00.

Coker Palmer does not issue ratings recommendations but analyst Trey Stolz issues a new fair value estimate, comments "We view Superior Energy Services as the one true “mid-cap” service provider in North American land services offering investors segment diversification and balance sheet strength that is less common in today’s oilfield services market. Accelerating completion activity, coupled with tightening utilization, is setting U.S. pressure pumping companies up for a massive pricing rebound, in our view. Superior’s massive Permian basin presence offers prime access to the most active basin. Using our 2018 EBITDA estimate of $505mm with a 9.7x EV/EBITDA multiple, we arrive at our fair value target of $25.00 per share. We model in a downside risk of $10 per share with an upside potential of $33.00 per share, which factor in lower/faster ramp scenarios for pressure pumping pricing, respectively. We use 5.0x and 12.0x our 2018E EBITDA for our downside and upside scenarios, respectively."

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 $14.25 yesterday.

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