S&P Upgrades Superior Energy Services From Hold to BUY

October 11 00:00 2011

NEW YORK, October11, (RainbowNewsLine.com): Analyst Stewart Glickman of  S&P Equity Research has upgraded the shares of Superior Energy Services (NYSE: SPN) from HOLD to BUY. The target price has been reduced from $46 to $36.

Analyst Stewart Glickman of S&P Equity Research, in a research note published yesterday mentions that the shares of Superior Energy Services fell 16% mainly due to the corporate action to acquire Completion Production Services (NYSE: CPX) for $2.6 billion in cash and stock (with 21% cash). Despite the deal that values CPX at a 61% premium, the analyst feels that CPX’s forward multiple has shrunk significantly and thus making the deal more enticing for Superior Energy Services. Depending upon the approvals, analysts view the deal to add value in ’12 for SPN. Such strategic acquisition is viewed as a wager made on lasting growth in Lower 48 shale plays, the analyst adds.