Raymond James Raymond James’ Michael Barth raised his Precision Drilling Corp. target to $136 from $132 with a “strong buy” rating. The average is $127.49.
“Our thesis on PD remains unchanged: the business is generating healthy FCFE, we believe risk is skewed to the upside for drilling activity and margins, and shareholder returns (via buybacks) are ramping up. In our view, market implied expectations are too low. We’ve revised estimates slightly and our target moves to $136/share which represents 45-per-cent upside to the current price,” said Mr. Barth.
* Mr. Michael Barth moved his Secure Energy Services Inc. target to $13.50 from $13.25, above the $13.28 average, with an “outperform” rating, while ATB Capital Markets’ Nate Heywood increased his target by $1 to $14 with an “outperform” rating.
“SES continues to perform well operationally, with key KPIs all showing healthy growth year-over-year(adjusting for the Tervita asset sale),” he said. “The company also continues to add new high-ROIIC growth projects around existing infrastructure, and we expect to see more of this in the future — consistent with our previous view. Finally, management announced that the long-awaited SIB is coming, although investors will have to wait until next week for any firm details. All told, we still see reasonable value in the stock today (17-per-cent return-to-target) particularly ahead of the SIB. As such, we reiterate our Outperform rating.”