UPDATE: Wunderlich Securities Initiates Coverage on Superior Drilling Products with Buy Rating, $8 PT on Stability and Growth Through Innovation

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler initiated coverage on

with a Buy rating and $8.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Superior Drilling Products, Inc. (SDPI) with a Buy rating and $8 target. SDPI is a manufacturer and remanufacturer of oilfield service equipment, including drill bits and other downhole tools. The company is broken down into three segments: Remanufacturing Drill Bits, Manufacturing Drill Bits, and Rental Equipment. On May 29, 2014, SDPI purchased Hard Rock Solutions in a deal that brought the sales and service of its patented (and patent pending) Drill N Ream™ product in house, vertically integrating the company as it looks to grow the usage of this tool. With the Remanufacturing business a good source of stable revenues and income (but limited growth) and an emerging growth vehicle in Drill N Ream, we are bullish on SDPI and initiate with a Buy rating.” Superior Drilling Products closed on Monday at $5.74.