Analyst John Gibson CFA of BMO Capital maintained a Buy rating on PHX Energy Services, with a price target of C$8.50.
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John Gibson CFA has given his Buy rating due to a combination of factors that highlight PHX Energy Services’ strong financial position and strategic initiatives. Despite facing a challenging environment with declining U.S. rig counts, PHX has managed to deliver solid quarterly results, maintaining its financial flexibility with minimal debt and a robust working capital balance. The company has exceeded its 70% free cash flow threshold for shareholder returns, and with anticipated lower capital expenditures in the coming years, it is expected to sustain this level of returns.
PHX’s performance is further supported by its strong balance sheet, focus on technology, and new product developments. The company’s differentiated technology offerings and solid market share contribute to its strong dividend yield and attractive valuation. These factors, combined with a modest revenue increase and stable EBITDA estimates, underpin the Outperform rating and the $8.50 target price, reflecting confidence in PHX’s ability to navigate market challenges effectively.
Gibson CFA covers the Energy sector, focusing on stocks such as North American Construction Group, Parkland, and Mattr. According to TipRanks, Gibson CFA has an average return of 21.8% and a 64.76% success rate on recommended stocks.
In another report released on November 2, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$8.50 price target.