Weak Oil Prices Weigh on Superior Drilling Products (SDPI); Roth Capital Remains Neutral

Roth Capital reiterated a Neutral rating on Superior Drilling Products (NYSE: SDPI), and cut the price target to $1.10 (from $1.75), following the company's 3Q earnings report. Revenue of $3.0 million and an EPS loss of $0.11 were below Roth's estimates of $3.2 million and a loss of 0.07. The revenue miss was due to lower than anticipated revenue from manufacturing, while the EPS miss was due to one-time items.

Analyst Joe Reagor commented, "On November 13, 2015, SDPI reported its financial results for Q3 2015. Revenues and earnings were below expectations as the weak oil price environment continued to weigh on SDPI's businesses. Additionally, we believe 2016 is shaping up to show moderate growth, but believe weak oil prices could make prior growth expectations optimistic. Thus, we are cutting our price target from $1.75 to $1.10 and maintaining our Neutral rating."

For an analyst ratings summary and ratings history on Superior Drilling Products click here. For more ratings news on Superior Drilling Products click here.

Shares of Superior Drilling Products closed at $1.16 yesterday.

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