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How Have Superior Energy’s Recommendations Changed before the 4Q16 Earnings?

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Wall Street’s recommendations for Superior Energy Services

On January 6, 2017, approximately 70% of the analysts tracking Superior Energy Services (SPN) recommended a “buy” or some equivalent for the stock. Approximately 30% of the analysts tracking SPN have recommended a “hold,” while none rated a “sell.”

By comparison, approximately 45% of analysts tracking Core Laboratories (CLB) have recommended a “buy” or some equivalent for the stock as of January 6.

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How the consensus “buy” percentage has changed for Superior Energy

From October 6, 2016, to January 6, 2017, the percentage of analysts recommending a “buy” or some equivalent for SPN has fallen from 73% to 70%. Analysts’ “hold” recommendations have increased for SPN in the past four months. One year ago, ~74% of sell-side analysts recommended a “buy” for SPN.

Notably, Superior Energy Services makes up 0.16% of the iShares North American Natural Resources ETF (IGE).

Analysts’ target prices for SPN and peers

Wall Street analysts’ median target price for SPN on January 6 was $20. SPN is currently trading at ~$18.7, implying ~7% upside at its current median price. One year ago, the average target price for SPN was $18.80.

By comparison, the mean target price as surveyed among sell-side analysts for Tidewater (TDW) was $3.63 on January 6. TDW is currently trading at ~$3.6, implying nearly zero upside potential at its average target price. The mean target price as surveyed among the sell-side analysts for FMC Technologies (FTI) was ~$35.5 on January 6. FTI is currently trading at ~$36.4, which implies 3% downside at its average price.

You can learn more about the OFS (oilfield services and equipment) industry in Market Realist’s series The Oilfield Equipment and Services Industry: A Primer.

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