NEW YORK, March 14, 2011 /PRNewswire/ -- Tesco Corp. (TESO: $17) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. TESO carries S&P's highest investment recommendation of 5-STARS, or Strong Buy. Incorporated in Alberta, Canada, but with headquarters in Houston, TX, Tesco is a leading provider of capital equipment to the upstream oil & gas industry.
"While Tesco's near-term prospects are geared towards the global rig count by virtue of sales and rentals of top drives, which are devices used in the process of drilling a well, its long-term prospects are more geared to industry take-up of its budding energy technology innovations," said Stewart Glickman, Oil & Gas Analyst at Standard & Poor's Equity Research. "These innovations focus on ways to change the ways in which wells are drilled, reducing operational risk, and saving clients money in the process."
Glickman views the shares as significantly undervalued based on discounted cash flow and relative valuation analyses. "Also, with what we see as solid cash flow generation, no long-term debt, and a portfolio of patented technologies, we think Tesco presents an attractive buyout opportunity for larger oilfield services players," added Glickman.
To view a video of Mr. Glickman discussing TESO paste the following link into your browser.
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