DA Davidson analyst Sonny Randhawa initiated coverage of Core Laboratories N.V. (NYSE: CLB), issuing a Buy rating and $136 price target. The report pointed out five points central to the firm’s thesis.
First off, Randhawa noted that 80 years of continued innovation had made the company a leader in oil reservoir optimization, offering technologies focused on augmenting its clients’ returns on investment by augmenting ultimate recovery and maximizing their daily production. The company’s “innovation and cutting-edge technologies have created significant value for its own and its clients’ shareholders worldwide."
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Other important points to the thesis included:
- The company’s focus on technology makes it a main contender in today’s environment of increasing demand for oil services.
- Its presence in more than 50 countries make its revenue less dependent on a sole geography.
- The firm’s production enhancement segments “should benefit from improved North American activityin 2H16. With the rise of completion intensity and size of the drilled but uncompleted inventory (DUC), we believe the segment should outperform increases in the rig count,” the report added.
- Although the stock trades at a higher valuation than its industry peers, DA Davidson analysts believe the premium is justified given Core Laboratories’ “competitive positioning, superior returns, and lower capital requirements.”