RES - RPC slides as Citi cuts to Sell saying recent rise not justified by fundamentals

2023-06-16 11:02:12 ET

RPC Inc. ( NYSE: RES ) -5.3% in Friday's trading as Citi downgraded the stock to Sell from Neutral with a $7 price target, saying the stock's recent bounce is not warranted given deteriorating market fundamentals in specialized oilfield services and equipment.

RPC ( RES ) is "relatively more exposed to the spot market and offers a less robust integrated suite of completion services, but trades at a higher multiple to peers," Citi analyst Scott Gruber wrote.

Gruber lowered his forecast for FY 2023 EBITDA by 6% to $470M and FY 2024 by 8% to $377M, citing lower activity and weaker frac pricing.

More on RPC Inc.:

• Financial and valuation comparison to sector peers
• Analysis: RPC: Attractively Valued In A Sector With Robust Earnings Potential
• Stock price return: Down 9% YTD, down 4% in the past 12 months

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