UPDATE: Goldman Sachs Initiates Neutral on OYO Geospace Corporation: Risk/Reward Balanced
Goldman Sachs initiated coverage on OYO Geospace Corporation (NASDAQ: OYOG) with a Neutral rating and a $120 price target.
Goldman Sachs commented, "We initiate coverage of seismic equipment manufacturer OYO Geospace (OYOG) with a Neutral rating in the context of our Attractive view on Oil Services, and see 23% upside to our $120, 6-month target price (group: 22%). Its market leading wireless product is a compelling secular winner that should drive strong free cash flow growth, and allow OYOG the flexibility to execute expansion initiatives (i.e., acquisitions). That said, we view OYOG's current risk-reward as balanced on account of its small size and potential obsolescence risk tied to its wireless product, which drives the bulk of current earnings and its strong forward growth profile."
OYO Geospace Corporation closed at $99.94 on Tuesday.
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Tags: Goldman Sachs