Wells Fargo Taking Up Estimates On Drill-Quip (DRQ)
Wells Fargo is raising its estimates on Drill-Quip, Inc. (NYSE: DRQ).
In a note sent to clients, Wells Fargo writes, "Given conversations with investors, and continued supportive, if not incremental, positive newsflow over the past month, we've decided that, for the deepwater tree providers, it's time to shift our valuation basis from 2011 to 2012. Also, we've also raised our 2012E EPS and EBITDA on greater award assumptions of (1) subsea processing systems for FTI ($3.83/$820MM to $4.07/865MM) and (2) TLP-related equipment for DRQ ($3.65/$231MM to $4.15/265MM). For our valuation multiples, we start with our existing targets on 2011, which reflect our prior expectation that next year would be the mid-point of this new upcycle;"
Shares of DRQ are off $1.21 to $75.90, a loss of 1.6%.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.