Geospace upgraded to "outperform"

05/08/06 - RBC Capital Markets

NEW YORK, May 8 (newratings.com) - Analyst Kurt Hallead of RBC Capital Markets upgrades OYO Geospace Corporation (OYOG) from "sector perform" to "outperform," while raising his estimates for the company. The target price has been raised from $44 to $77.

In a research note published this morning, the analyst mentions that the company could win contracts worth more than $40 million for additional reservoir equipment. The analyst expects Geospace to announce at least one award within the next few months. The seismic spending cycle is in the early stages of an upturn, RBC Capital Markets adds. The EPS estimate for FY07 has been raised from $2.75 to $4.08.