Barclays analyst Derek Podhaizer downgraded Ranger Energy to Equal Weight from Overweight with an unchanged price target of $14. Since Q2 of 2022, onshore energy services investors were ready to move on from North America, calling it the peak and declaring "this is as good as it gets," Podhaizer tells investors in a research note. However, as 2022 progressed, earnings expanded, free cash flow increased, and shareholder returns were announced, says the analyst. However, he still believes North America "gets dismissed." As such, he sees a favorable set up for 2023 and expect the sector "to continue to surprise." Podhaizer cites valuation for the downgrade of Ranger Energy.
Published first on TheFly
