The oilservice provider that keeps on giving.
SunTrust Robinson Humphrey has initiated coverage on Core Laboratories (ticker: CLB), the company said in a research note on November 20, 2014. A total of 18 firms now cover the company, with four in Europe and 14 in the United States. Eleven of the companies recommend CLB as a “Buy” or are Market/Sector Outperform.” The remaining seven firms either don’t conduct a ratings system or have CLB listed as a “Hold” or “Neutral.”
Target prices range from $125 to as high as $200 per share, according to data compiled by Bloomberg. Five of the companies have a target price higher than $170. The stock closed at $141.93 on November 21, 2014.
Core Lab is a reservoir optimization company specializing in production enhancement and reservoir description. CLB routinely buys back shares and returns further value to its shareholders via dividend payments. More than $107.3 million was returned in the most recent quarter – a company record. Free cash flow registered at $66.6 million – 24% of which was returned directly to shareholders, the most of any major oilservice company.
CLB has commenced four different share repurchases in the current quarter alone. Its five value drivers in EnerCom’s OilService Index currently lead all of its 60 peers, including metrics on return on invested capital, return on operating property plan equipment, operating profit percentage, debt to market cap and return on equipment. Its price / cash flow per share for 2015 also tops the list, in addition to its predicted value.
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