The Essential Energy Services (TSE:ESN) Stock is a “Buy”

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Essential Energy Services stock

The financial services advice firm from Florida, United States, Raymond James Financial, Inc. has improved the rating of Essential Energy Services Ltd (TSE:ESN) to a “Strong Buy”. Raymond James published a report late last week where they mention that given the strong performance of the oil and gas business, their stock is expected to do much better in the immediate future.

Raymond James Financial has put a price target of $1.11 or C$1.50 for the stock. It closed at C$0.67 on Friday. In early January, the stock had reached C$0.85. However, the stock was trading at C$3.08 in December 2013, which was the maximum in the last five years.

Essential Energy Services, based out of Calgary in Canada provides oilfield services to oil and gas exploration and production business in western Canada. The two segments of the company are downhole tools & rentals, and well servicing where they offer well completion, production, and workover services throughout the WCSB or the Western Canadian Sedimentary Basin.

Many Other Analysts Improve the Rating of Essential Energy Services Too

Raymond James is not the only equity analyst firm that has upgraded Essential Energy. Canaccord Genuity published a report on Tuesday where they have raised the stock’s target price from C$0.85 to C$0.95. Clarus Securities also came out with their report, where they mention that the stock is a speculative buy. AltaCorp Capital too has upgraded their rating to “outperform” in a research report they published last week.

TD Securities was not left behind as well. They have also raised their price objective for Essential Energy Services from C$0.75 to C$0.95, and also advised investors to buy the stock. Two other equity analysts are asking investors to purchase the stock at its current price, while one of them says it’s an extremely strong buy. However, three investment analysts have rated the Essential Energy stock as a “hold”.

A Price Target of C$1.13 for Essential Energy Services

Presently, the consensus price target for the stock is C$1.13, which is almost a 50 percent gain over its closing price of Monday. The average rating for the stock is “buy”.

The Essential Energy Services (TSE:ESN) stock opened at 0.67 after the Raymond James report was disclosed. The stock has a one-year low of $0.52 and a one year high of $0.90. Market cap of Essential Energy stands at $86.74 million. Their 50-day moving average price is $0.76, and their 200-day moving average price is $0.69.