Margin Increase Likely For Superior Well Services (SWSI)

Jefferies & Co. has upgraded the rating for Superior Well Services SWSI from Hold to Buy. The price target has also been revised significantly from $14 to $20. This upward revision has been made in the expectation that Superior Well’s margins will see a sharp increase in the next two quarters. Other factors influencing the call have been clarity regarding the company’s liquidity position and a better supply-demand situation for equipment. Analysts are of the opinion that Superior Well has been too conservative in its guidance, estimates and valuation.