UPDATE: Global Hunter Securities Upgrades Dril-Quip to Buy on Backlog Levels
Global Hunter Securities raised its rating on Dril-Quip (NYSE: DRQ) from Neutral to Buy while reducing its price target from $79 to $76.
Global Hunter Securities commented, "While margins in Q3:12 were weaker than expected and guidance calls for flat earnings in Q4:12, orders are likely to set new records over the coming quarters. We believe that a healthy backlog will turn into higher revenues and record earnings on industry leading margins. Reflecting a reduced 2013 EPS estimate, we are revising our price target to $76 from $79. In spite of the reduction, we are upgrading our rating on DRQ to Buy from Neutral after Q3 fundamentals played out as expected, and given the order backlog and with the negative margins and uninspiring Q4 guidance out of the way, we are ready to own this name again."
Dril-Quip closed at $66.54 on Friday.
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