Raymond James lowered its price target for Oil States International (NYSE: OIS) to $11 from $12 but maintained an Outperform rating on the stock. The revision followed quarterly guidance that was modestly below both the firm’s estimates and broader Street expectations.
Oil States reported quarterly results above forecasts, supported by stronger bookings that lifted its backlog to the highest level since late 2014. Free cash flow also returned to positive territory during the period. The company’s shares were trading at $9.60 after gaining 60.8% over the past year.
Raymond James said its previous estimates appeared to be ahead of the company’s current outlook. The firm nevertheless retained a favorable assessment of Oil States’ long-term growth potential, valuation and ability to generate free cash flow. It also expects further free cash flow improvement in the fourth quarter of 2026.
Management provided limited detail on 2027 because the annual budgeting process is only beginning. Recent company results for the third quarter of 2026 included adjusted earnings per share of $0.15, above the $0.13 forecast, while revenue reached $170 million compared with expectations of $164.48 million.
Oil States also reported backlog of $482 million, its highest level in nearly 12 years, reflecting stronger offshore demand. The company responded to the development with a new share buyback authorization, although it continues to face cost pressures and working-capital requirements.
Sources: Investing.com News.