Jefferies & Co Bullish On NOA

Jefferies & Co. maintains their “Buy” rating for TiVo North American Energy Partners Inc.(USA) (NYSE: NOA) with a price target of $9, this represents a premium of over 40% over Wednesday’s closing price of $6.40.

After a day meeting with North American Energy Partners management, the Firm believes that “the company will manage through the current difficult market environment as firming crude oil prices will improve Canadian oil sands activity. We note the company's recurring revenue stream, new contracts, and cost performance. A strong market position, solid balance sheet, and young equipment fleet will support earnings.”

The Firm further added "Improving recurring services revenues, high barriers to entry, a strong balance sheet, a stable crude oil price, and declining project costs will support the company through the downturn. Investments moving forward, such as Kearl, will create profit opportunities for NOA, in our view.”