RPC, Inc. upgraded to Neutral at Citi after Pintail acquisition

As previously reported, Citi analyst Scott Gruber upgraded RPC, Inc. (RES) to Neutral from Sell with a price target of $4.75, down from $5.50. The stock is down 28% year-to-date and down 44% over the past twelve months given the drop in U.S. activity and rate concession in pressure pumping, but the company’s just completed acquisition of Midland’s Pintail Completions further shifts their revenue exposure away from frac and improves their customer profile, the analyst tells investors in a research note. RPC also carries no long-term debt and still has cash for future acquisitions, Citi adds, noting that the stock is likely nearing a bottom.