The analysts wrote, “In our view, record exploration success and supportive crude oil prices ($100/bbl Brent) are set to drive at least three more years of growth in wells drilled from floating rigs – a key driver of demand for Dril-Quip (DRQ). Based just on announced new construction, the floating rig fleet will likely grow 22% by year-end 2015. With each floating rig drilling more than three wells/year, combined with new comfort in DRQ’s revenue capacity, mix and pricing, we are increasing our 2013/2014 EPS estimates to $3.65/$5.05 from $3.55/$4.55. This implies EPS growth will accelerate to 24% in 2013 and 38% in 2014.”
A number of other analysts have also recently weighed in on DRQ. Analysts at Bank of America upgraded shares of Dril-Quip from an “underperform” rating to a “buy” rating in a research note to investors on Thursday. They now have a $101.00 price target on the stock. Separately, analysts at Global Hunter Securities downgraded shares of Dril-Quip from a “buy” rating to an “accumulate” rating in a research note to investors on Monday, January 14th. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Dril-Quip in a research note to investors on Tuesday, January 8th. They now have a $80.00 price target on the stock.
Four investment analysts have rated the stock with a buy rating, one has issued an overweight rating, five have issued a hold rating, and one has assigned an underweight rating to the company. The stock currently has an average rating of “overweight” and a consensus price target of $88.50.
Shares of Dril-Quip opened at 80.99 on Thursday. Dril-Quip has a 52 week low of $57.27 and a 52 week high of $85.55. The stock’s 50-day moving average is currently $81.21. The company has a market cap of $3.281 billion and a P/E ratio of 27.55.
Dril-Quip last issued its quarterly earnings data on Thursday, February 28th. The company reported $0.76 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.74 by $0.02. The company had revenue of $188.48 million for the quarter, compared to the consensus estimate of $189.14 million. During the same quarter last year, the company posted $0.70 earnings per share. Dril-Quip’s revenue was up 9.8% compared to the same quarter last year. Dril-Quip has set its Q1 guidance at $0.73-0.83 EPS and its FY13 guidance at $3.40-3.60 EPS. On average, analysts predict that Dril-Quip will post $3.66 earnings per share for the current fiscal year.
Dril-Quip, Inc. (Dril-Quip) designs, manufactures, sells and services engineered offshore drilling and production equipment that is suited for use in deepwater, harsh environment and severe service applications.
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