In a report published Thursday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating on Pioneer Energy Services (NYSE: PES), and raised the price target from $18.00 to $22.00.
In the report, Wunderlich Securities noted, “Pioneer Energy Services (PES) continues to show industry leading utilization rates for its drilling rigs and production services equipment.
"With the continued push by E&P companies (its clients) to be more efficient PES' high spec equipment continues to see demand increase. This can be illustrated by the company's most recent presentation that updated its utilization rates and the signing of new contracts for new-build drilling rigs that should create both near-term and long-term revenue and EBITDA growth. We have adjusted our numbers to account for the higher-than-expected (and higher-than-industry) utilization rates through May 2014 as well as the new-build rig deliveries. We feel Pioneer remains a great way to play the OFS sector given its improved balance sheet and high spec fleet.”
Pioneer Energy Services closed on Wednesday at $18.01.
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