UPDATE: Credit Suisse Upgrades Franks International On Positive Outlook

In a report published Wednesday, Credit Suisse analyst James Wicklund upgraded the rating on

from Neutral to Outperform, and raised the price target from $22.00 to $27.00. In the report, Credit Suisse noted, “We are raising our rating on Frank's to Outperform and our target price increases to $27 (from $22), based on 8x our 2016 EBITDA estimate. Issues still exist both internally and industry-wide. Mgmt. is better understanding investors' needs and requirements and accelerating the implementation of numerous operating initiatives to better optimize its operations, issues not germane to a family-owned business. The search for the CFO is ‘progressing.' But at its core, this is a very well managed engineering company, generating 40%+ EBITDA margins, with no debt, positive EVA and a global duopoly, which is currently trading at 5.1x-6.6x 2016 EBITDA and which should return to the 7x-9x range over the next year or so as reporting and operations get more efficient.” Frank's International closed on Tuesday at $19.34.