Wall Street’s forecasts for Superior Energy Services

In the final part of this series, we’ll discuss Wall Street analysts’ forecasts for Superior Energy Services (SPN) stock following its 3Q17 earnings release. On October 31, approximately 48% of analysts tracking Superior Energy Services rated it as a “buy” or some equivalent.

Approximately 52% rated the company as a “hold.” None of the sell-side analysts recommended a “sell” or an equivalent.

Wall Street’s Forecasts for Superior Energy Services

Superior Energy Services comprises 2.8% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has fallen 34.0% year-to-date versus the 48.0% fall in SPN’s stock price during the same period.

In comparison, ~89.0% of the Wall Street analysts tracking Halliburton (HAL) rated it as a “buy” or some equivalent on October 31. Approximately 8.0% rated the company as a “hold,” and 3.0% of the sell-side analysts tracking HAL rated it as a “sell” or an equivalent.

Analysts’ rating changes for SPN

From July 31, 2017, to October 31, 2017, the percentage of analysts recommending a “buy” or some equivalent for SPN has decreased from 50.0% to 48.0%. These analysts’ “hold” recommendations have increased for SPN during the same period. A year ago, ~69.0% of the sell-side analysts recommended a “buy” for SPN.

Analysts’ target prices for SPN

Wall Street analysts’ mean target price on October 31, 2017, was ~$11.70 for Superior Energy Services. SPN is currently trading at ~$5.60, implying an ~111.0% upside at its current price. Analysts’ average target price for SPN was $13.90 a month ago.

Target prices for SPN’s peers

The mean target price, surveyed among the sell-side analysts, for Core Laboratories (CLB) was $111.40 on October 31. CLB is currently trading at ~$95.60, implying a 17.0% upside at its current price.

The mean target price, surveyed among the sell-side analysts, for Key Energy Services (KEG) was $14.00 on October 31. KEG is currently trading at ~$10.10, implying a 38.0% upside at its current price.

You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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