Analyst Luke Lemoine said in a report that the oil services company checks all the boxes as far as liquidity, managing costs, spending in the right places (including services that will see an early recovery) and North American land exposure.
Superior's U.S. land sales were just under 70% of total revenues in 2014 before the industry downturn was in full force, versus 44% in the second quarter, and Lemoine expects those sales should be back at that level by 2018 as the rig count grinds higher.
The company also has more than $500 million in liquidity, which should be able to fund "almost any level" of market growth, Capital One said.
The firm has a $20 per share price target for the company's shares. They closed relatively flat yesterday at $16.53 and were up 2% in morning trading.
Jefferies has the company at a buy with a price target of $20, versus its previous estimate of $21, while RBC Capital Markets has a price target for the company of $20 with a sector perform rating. Seaport Global Securities rates the company as a buy with a $19 price target. Piper Jaffray's Simmons & Co. International is more bullish on the company with a price target of $21 and an overweight rating.
Tudor, Pickering, Holt & Co. isn't as optimistic, saying Superior doesn't have as much North American onshore early cycle "juice" as some believe and has already been the second best performing-diversified oilfield services stock this year, up 23% versus 25% at Halliburton (HAL - Get Report) and 6% for oil services index (OIH - Get Report) . "So we can't yet bring ourselves to jump on board [the] SPN stock bandwagon," they said. TPH has the stock as a hold.