RE:Q2 results look good WTF! Time to pick up some bargain shares. TD raised target to $21
Outlook
With Canada set to deliver a strong second half in addition to both industry and Trican improvements in the
U.S., we believe that the second half of 2014 and into
2015 present a clearer picture of growth for investors.
We expect margins to expand through the rest of the year as pricing, utilization, and cost management provide
tailwinds for the EBITDAS line. With over 100,000 HHP
still idle, we see little chance of an increase in
capital budget in 2014, other than logistics and support equipment or perhaps capital to expand its downhole
tool business. At the same time, we believe that Trican’s
spare fleet gives it a no-cost option on any unforeseen
tightening in markets that many of its peers lack.