Gabelli Maintains Buy on RPC (RES)

Gabelli is out with its report today on RPC RES, maintaining Buy. In a note to clients, Gabelli writes, "Demand from longer laterals and rising 'frac' stages combined with the doubling of RPC's pressure pumping fleet will drive 56% and 64% growth in revenue and EBITDA, respectively, in 2011. RPC's conservative management and clean balance sheet with $112M in net debt (0.3x Net Debt to EBITDA) will allow RPC to return capital to shareholders via dividends and pursue attractive growth opportunities via acquisition or capacity expansion. Trading at 6x our 2011 EBITDA estimate and at a 17% discount to our $29 PMV, we recommend purchasing the stock." At the time of posting, shares of RES were trading pre-market at $24.20, up 0.88% from Friday's close.