Pritchard Lowers Price Targets on Oilfield Service Companies (SPN, DRQ)
Pritchard Capital Partners dropped its price targets for Superior Energy Services, Inc. (NYSE: SPN) and Dril-Quip, Inc.(NYSE: DRQ). Both companies are providers of drilling equipment and services, and have been affected by the Gulf oil spill.
Pritchard lowered SPN's price target to $28.00 from $32.00. SPN is still rated Buy, and is currently trading at $20.44.
DRQ's price target was lowered to $58, from $70. DRQ is also rated Buy, and shares are trading at $46.71.
Crude oil is down $0.45 to $75.00/bbl after, July delivery contracts rose 1.5% to $75.48 after news of China's exports rising 48% YoY in May. Pritchard analysts said, "Crude has slowly crept into the ~$75 range as news of the European debt crisis has given way to a more positive outlook. As many structural issues within Euro region linger, we anticipate that crude will have limited price appreciation beyond current levels unless the risk capital flows back into the market as it was prior to the European debt crisis."
Natural gas is up 5 cents, 1.12%, to $4.70/MMbtu.
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