W-H Energy Services "outperform," target price reduced

10/12/07 - Credit Suisse

NEW YORK, October 12 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on W-H Energy Services (WHQ), while reducing their estimates for the company. The target price has been reduced from $78 to $71.

In a research note published this morning, the analysts mention that the company has reduced its EPS guidance for 3Q07 from $1.23-$1.28 to $1.06-$1.10, short of the consensus. W-H Energy Services has attributed the reduction in the guidance to lower-than-expected utilization and adverse mix shift in coiled tubing. The EPS estimates for 2007 and 2008 have been reduced from $5.03 to $4.68 and from $5.62 to $5.15, respectively.