Imperial Capital Lowers Superior Energy Services' Price Target

Scott Levine of Imperial Capital upgraded shares of

to Outperform from In-line on Wednesday, but lowered his price target to $28 from a previous $30. “Superior Energy Services is a diversified, mid-cap energy service company with a broad service portfolio and geographic footprint,” Levine wrote in a note. The analyst adds that while the overall energy services sector faces challenges following declining commodity prices, Superior Energy Services should outperform its peers. Levine notes that the company's geographic footprint is “more akin to a large cap than a small cap” and could help mitigate any pressure from an impending downturn in E&P and service activity. However, the analyst does state that since the company is exposed to a wide range of markets spanning the entire E&P life cycle, it should fare better than its less-diversified peers. Levine states that the company is attractive given its diversified business profile along with a healthy financial condition (the strongest of the energy services companies under his coverage), as well as a balanced capital deployment program.