LONDON (ShareCast) - (Sharecast News) - Analysts at RBC Capital Markets decreased their target price on energy services provider Hunting from 300.0p to 275.0p on Friday after the group issued lower-than-expected full-year underlying earnings guidance.
RBC Capital said Hunting's interim results were "broadly in line with expectations" and reflected ongoing trading challenges stemming from the Covid-19 pandemic and a and slower-than-anticipated recovery in oil and gas spending by its customers.

However, while Hunting's Titan revenues recovered "slightly more quickly than anticipated", its performance in the Asia Pacific region and Europe, Middle East and Africa were both weaker.

RBC Capital, which maintained its 'sector perform' rating on the stock, stated Hunting had suffered continued caution in its customer base into the third quarter and now expects full-year 2021 EBITDA to be around $10.0m lower year-on-year - roughly $10.0-15.0m lower than the analysts previous expectation and consensus.

The Canadian bank said: "Although we are optimistic that US E&P spending should increase in FY22 due to improved hedging prices, boosting both the Titan and US divisions, we think EMEA could continue to be weak. Hunting also expects there to be some inflation in raw material prices, particularly in steel, from H2 and into FY22, which is likely to reduce margins slightly from our previous expectations."

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