In a report released yesterday, John Gibson CFA from BMO Capital reiterated a Buy rating on PHX Energy Services, with a price target of C$10.50.
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John Gibson CFA has given his Buy rating due to a combination of factors, including PHX’s strong quarterly performance and improving profitability. The company delivered record Q4 revenue, notable margin expansion, and adjusted EBITDA that significantly exceeded expectations, demonstrating operating leverage from growing Rotary Steerable System activity.
In addition, PHX’s disciplined capital allocation, highlighted by a special dividend and commitment to returning 70% of free cash flow, supports an attractive total yield alongside a solid balance sheet. Structural demand for its technology, growing market share in both the U.S. and Canada, and a low valuation relative to forecast 2027 EBITDA underpin Gibson’s higher target price and continued positive stance on the shares.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is neutral on the stock.