Pason Systems Inc T.PSI

RBC 2

[retiredcf]

In a report preview quarterly earning for the oilfield services industry, RBC’s Keith Mackey cut his Precision Drilling Corp. target to $122 from $125, keeping an “outperform” rating. The average is $125.78.

“Our estimates generally sit below street consensus reflecting softer year-end activity in the Lower-48,” he said. “We expect service companies to provide initial 2024 outlooks which, for the most part, will be light on revenue growth but heavily focused on maximizing FCF generation. Our favourite stocks include those with what we view as differentiated business models, offering unique thematic exposure, basin diversification, and strong or improving FCF fundamentals. Our preferred list remains: SLB (SLB), Baker Hughes (BKR), Enerflex (NYSE: EFXT, EFX-CA), Liberty Energy (LBRT), and Trican Well Service (TCW-CA), and Pason Systems (PSI-CA).”