Post by
InOilITrust on Feb 21, 2021 3:08pm
Five days away from another 25 to 40 cents run-up
I have researched and tested with real cash Secure Energy Services for about 6-7 months now.
My feeling is that SES will be back to the 8$ range within 2 maximum 3 years. Also, it has the potential to stay stable for longer than other O&G stocks (as negative macro events take place in the mid-term), based on its integrated business model and fundamentals. I am copying here a snippet from an RBC analysis about one week ago:
"Our $4.50 price target is based on a 7.5x multiple of our 2022E EBITDA of $150 million. We apply a premium multiple relative to the benchmark of 6.5x based on our analysis of stock-specific factors within our valuation framework. We believe Secure is well positioned for range-bound commodity prices given its exposure to recurring revenue and increasing mix of longer-term revenue contracts, strong corporate EBITDA margins, and balance sheet strength. Our price target supports an Outperform rating.".
Stay long for the uphill ride.