Forum Energy Technologies (FET) Stock Price Target Raised at Keybanc
NEW YORK (TheStreet) -- Forum Energy Technologies' (FET) - Get Report price target was increased to $21 from $18 at Keybanc on Monday. The firm has an "overweight" rating on the stock.
The higher price target is based on Keybanc's belief that the Houston-based oilfield products company will be one of the first beneficiaries of a recovery in the U.S. oil services and equipment industry.
"Only a few small/mid cap companies are as well positioned as FET to take advantage of acquisition opportunities in the coming year," the firm wrote in a note.
However, Keybanc lowered its earnings estimates for 2016 and 2017 as the length of the current drilling downturn has exceeded its expectations.
"We see FET as a strong free cash flow generator in 2016 (at a rate of around $20 million per quarter) in spite of persistent low demand for its manufactured products," Keybanc said.
"We also believe the company will have ample liquidity from its cash reserves, cash flows and revolving credit facility to make acquisitions at a time when high-quality businesses can be bought for bargain basement prices," the firm added.
Shares of Forum Energy closed up by 2.33% to $17.13 on heavy trading volume on Monday.
About 1.57 million of the company's shares were traded today compared to its average volume of 920,492 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FET
