Wednesday November 14 2012 - In the News
The Globe and Mail reports in its Wednesday edition that Raymond James analyst Steve Hansen has hiked his rating on McCoy ($3.70) to "outperform" from "market perform." The Globe's Darcy Keith and Sonali Verma write in the Eye On Equities column that Mr. Hansen increased his price target to $5 from $4. Mr. Hansen says McCoy, whose third quarter earnings outpaced expectations, represents "a compelling value proposition." Mr. Hansen says the energy services company is expanding capacity, upgrading its facilities and also actively seeking acquisitions. Mr. Hansen notes that McCoy has benefitted from strong demand in both North American and international drilling markets. The Globe's Fabrice Taylor said on Feb. 22 that McCoy could be a possible takeover target. Mr. Taylor said that at less than seven times earnings, investors appear to be overlooking McCoy as a takeover candidate. He said a foreign company that wants to establish a footprint in Alberta would likely be generous in its valuation of McCoy. The stock could then be had for $3.32. Mr. Hansen tempered his enthusiasm for McCoy in the Eye column on March 27, when he downgraded the stock to "outperform" from "strong buy." The shares were then worth $4.19.