RBC Upgrade RBC Dominion Securities analyst Keith Mackey raised his CES Energy Solutions Corp. target to $3.50 from $3.25, maintaining an “outperform” recommendation. The average is $3.95. He also increased his Precision Drilling Corp. target to $156 from $147m above the $130.35 average, with an “outperform” rating.
“Fundamentals within the energy sector appear strong as oil markets remain in a tightening cycle, North America and global rig counts increase, and equipment & labour capacity tightens across the oilfield services sector,” said Mr. Mackey. “The aforementioned fundamental factors lead us to increase our 2022/23 EBITDA estimates by 3/10 per cent, while the recent pullback in stock prices leaves the sector trading well below its mid-cycle average multiples which we believe presents a buying opportunity on balance. Our preferred stocks are SLB, HP, PD, PSI, and SES.”