CPX Looks Cheap, Analyst Says

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Scott Burk and David Evanson

Forbes.com, Fall, 2011

Canaccord Genuity Energy analyst Scott Burk released a note entitled Rebound Candidate if No Recession where he maintained his BUY rating and $33 target on Complete Production Services (CPX). Mr. Burk said:

“Down 59% since July, we think CPX has already priced in a moderate recession and would have significant rebound potential in a stable macro environment.”

He added, “Complete has a lower debt level and more exposure to oily basins than in the 2008/09 recession. The stock appears cheap, even based on our lower-than-consensus estimates. We expect CPX to be one of the better performing stocks if/when the broader market and the macro outlook improve.”