UPDATE: Morgan Stanley Initiates Coverage on Superior Energy Services with Overweight Rating, $30 PT on Attractive Potential Upside

In a report published Friday, Morgan Stanley analyst Ole Slorer initiated coverage on

with an Overweight rating and $30.00 price target. In the report, Morgan Stanley noted, “Initiating coverage at OW. Using our 2015E EBITDA forecast 23% below consensus that does not discount a US Land recovery and a 4.7x EBITDA multiple (5% discount to hist. given structurally lower US Land outlook), we still get ~20% upside to our $30 PT. We see attractive potential upside to a $40 ‘high mid-cycle scenario' if our bearish pressure pumping and flat rig count outlook turns out to be too cautious.” Superior Energy Services closed on Thursday at $25.09.