- Superior Energy (SPN -1%) is upgraded to Outperform from In-line with a $23 price target, raised from $15, at Imperial Capital, which says SPN appears to have attractive leverage to a recovery in energy services.
- Imperial believes SPN is well positioned as an early-stage beneficiary of a potential E&P industry upturn, given its positioning in attractive onshore service lines, recent cost reduction efforts, and healthy balance sheet condition.
- The firm says SPN’s Q2 results may not reflect any fundamental improvement, but the impact of the industry upturn is likely to become more visible by year-end 2016 with results likely to accelerate in 2017 and beyond.