Upgrade Raymond James analyst Andrew Bradford believes Secure Energy Services Inc. (SES-T) will beat earnings expectations again when it reports second quarter results, driving the stock price even higher.
Secure’s shares are up 40% so far this quarter, outpacing the 24% gain for the TSX Capped Energy Index. That rally came in the wake of the company beating first-quarter consensus expectations by 9%.
For the second quarter, Mr. Bradford expects Secure to report $105 million in EBITDA, above the average Street estimate of $97 million.
“We think this continued ‘beat and raise’ pattern from Secure combined with strong free cash generation will continue to draw investors,” he said in note.
The analyst maintained a “strong buy” rating and increased his price target to $8.75 from $8.50.