Raymond James upgraded shares of Precision Drilling (NYSE:PDS) from a market perform rating to an outperform rating in a research note released on Friday morning, TheFlyOnTheWall.com reports. They currently have $11.50 target price on the stock.
“Alberta Investment Management Company (AIMCo) divested its 19% equity stake (56.6 mln shares) in Precision Drilling yesterday. As a result, the stock closed 9% lower (the TSX Composite Index was up 1%). A 9% one-day drop and the 26% return to our unchanged $11.50 target price compel us to re-rate the stock as an Outperformer. Management confirmed there have been no material changes to Precision’s business fundamentals since its Oct-24 Q3 operational update. What has changed since yesterday is the value of Precision’s shares. At 5.3x 2014E EV/EBITDA, Precision is the lowest valued contract driller in our coverage group. The average for the group is about 5.6x. Yesterday’s 9% share price drop presents a provocative entry point for investors into Precision, in our view. We are raising our rating on Precision to Outperform. Our $11.50 target price is unchanged.,” the firm’s analyst wrote.
Other equities research analysts have also recently issued reports about the stock. Analysts at Jefferies Group upgraded shares of Precision Drilling from a hold rating to a buy rating in a research note to investors on Friday. They now have a $11.00 price target on the stock. Separately, analysts at RBC Capital reiterated an outperform rating on shares of Precision Drilling in a research note to investors on Thursday. Finally, analysts at Cowen and Company raised their price target on shares of Precision Drilling from C$12.00 to C$13.00 in a research note to investors on Monday, October 28th. They now have an outperform rating on the stock. Seven research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The company presently has an average rating of Buy and an average target price of $11.75.
Shares of Precision Drilling (NYSE:PDS) traded up 4.91% during mid-day trading on Friday, hitting $9.18. 4,292,050 shares of the company’s stock traded hands. Precision Drilling has a 1-year low of $7.29 and a 1-year high of $11.21. The stock’s 50-day moving average is $9.95 and its 200-day moving average is $9.73. The company has a market cap of $2.542 billion and a price-to-earnings ratio of 416.67.
Precision Drilling (NYSE:PDS) last released its earnings data on Thursday, October 24th. The company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by $0.07. The company had revenue of $488.45 million for the quarter, compared to the consensus estimate of $508.26 million. During the same quarter in the previous year, the company posted $0.14 earnings per share. The company’s revenue for the quarter was up .8% on a year-over-year basis. Analysts expect that Precision Drilling will post $0.61 EPS for the current fiscal year.
Precision Drilling Corporation (NYSE:PDS) is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States.
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