Newpark Resources Inc (NYSE:NR) Shares Rally on Credit Suisse Upgrade

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Newpark Resources Inc (NYSE:NR) shares advanced 13.57% on Monday to $5.44 after the company received a stock upgrade from Credit Suisse.

Newpark Resources Inc (NYSE:NR) has a market capitalization of $469.39 million at 84.11 million shares outstanding. Credit Suisse upgraded its shares to “Outperform” from their previous “Neutral” rating. Analysts have a consensus price target of $6.21 on the stock, with some going as high as $8.00 and the lowest at $5.00. The stock is trading in a 52-week range of $3.35 to $9.16.

This upgrade follows a relatively upbeat earnings release for the company last April 28, 2016. Total revenues for the first quarter of 2016 were $114.5 million compared to $150.6 million in the previous quarter and $208.5 million in the same quarter a year ago.  Net loss for the first quarter of 2016 was $13.3 million or $0.16 per share compared versus a net loss of $83.1 million or $1.00 per share in the earlier quarter.

It’s worth noting that the first quarter figures also accounted for $3.4 million of pre-tax charges on workforce reductions in North America and a $1.9 million gain on the purchase of a portion of Newpark Resources Inc convertible senior notes in the open market. The numbers also included a $1.6 million reduction in depreciation expense associated with rental mats in the Mats and Integrated Services segment.

The upgrade was also likely spurred by the pickup in crude oil, with WTI crude oil and Brent crude oil both trading close to $50/barrel once more.

Newpark Resources Inc is an oil and gas supplier that provides products and services to the oil and gas exploration industry. It  operates its business through two segments: Fluids Systems, which offers customized solutions, including technical drilling projects involving subsurface conditions, and Mats and Integrated Services, which provides composite mat rentals, well site construction and related site services to oil and gas customers at well, production, transportation and refinery locations in the United States.

 

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