BJ Services "neutral," target price reduced

07/25/07 - Credit Suisse

NEW YORK, July 25 (newratings.com) - Analysts at Credit Suisse maintain their "neutral" rating on BJ Services Co (BJS), while reducing their estimates for the company. The target price has been reduced from $34 to $30.

In a research note published this morning, the analysts mention that the company has posted its F3Q07 EPS from continuing operations ahead of the consensus. BJ Services is adding capacity and moving its equipment overseas, and expects to generate international PP margins in the high-teens range going forward, the analysts say. The EPS estimates for FY07 and FY08 have been reduced from $2.55 to $2.52 and from $2.52 to $2.48, respectively, to partly reflect the 3Q results and the 4Q guidance.