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Expro Group (NYSE:XPRO) -5.8% in Monday’s trading as Goldman Sachs downgrades the stock to Neutral from Buy with a $23 price target, saying it remains constructive on the company’s international and offshore exposure but sees limited upside following the stock’s YTD outperformance.
In the current stock picking environment, where international levered small-to-midcap oilfield service companies have outperformed, Goldman analyst Neil Mehta says he prefers stocks with immediate catalysts.
While Mehta sees potential idiosyncratic drivers for Expro (XPRO), he views them as longer-dated and more gradual, outside of M&A, given the company’s production oriented business.
The analyst raises his EBITDA estimates for 2024, 2025 and 2026 by 8%, 9% and 7% following the close of the Coretrax acquisition where it now includes the contribution in his estimates.