CPX Looks Cheap, Analyst Says

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Forbes.com, Fall, 2011. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

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.”