Wunderlich Securities Sees Good Things Ahead For Superior Drilling Products

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $8.00 price target on Superior Drilling Products (NYSE: SDPI).

In the report, Wunderlich Securities noted, “2Q14 results are a strong first report for SDPI. The company reported EPS of $0.03 that beat our $0.01 forecast and was in-line with the Street's $0.03 estimate. Revenues and EBITDA were nicely in-line with Street estimates as the company performed nicely operationally while undertaking its initial public offering. Solid EBITDA and positive EPS is a great place to be for SDPI this early in the life of Drill N Ream.

"Something we have been drawn to since the SDPI opportunity began was the fact that its drill bit refurbishment work business generates strong revenues and EBITDA. We believe this allows the company to properly expand the Drill N Ream growth potential while also showing positive earnings and EBITDA during the process.”

Superior Drilling Products closed on Thursday at $6.24.