Raymond James cut its price target on Oil States International to $11.00 from $12.00 while keeping an Outperform rating. The cut follows the company's third-quarter results, which beat expectations with adjusted EPS of $0.15 versus a forecast of $0.13 and revenue of $170 million versus $164.48 million expected.
Oil States reported a backlog of $482 million, the highest since late 2014. Free cash flow returned to positive territory in the quarter, and the company is expected to be profitable this year after recent losses. The stock has gained 60.8% over the past year and currently trades at $9.60.
Raymond James said its prior expectations "appeared ahead of the curve." The firm noted that fourth-quarter 2026 guidance came in modestly below both its own and Street expectations. Commentary on 2027 was limited because the company's annual budgeting process is just beginning. Raymond James expects further free cash flow improvement in the fourth quarter of 2026.
Despite the guidance miss, the firm stated it still views the company's long-term growth story, valuation, and free cash flow generation capability favorably. The company maintains a strong balance sheet and liquid assets exceeding short-term obligations.
OIS stock has faced ongoing cost pressures and working-capital needs. The company authorized a new buyback.