RES: Share Price Will Face Pressure As Earnings Expectations Reset

Analysts have trimmed their price target on RPC to approximately $4.00 per share from about $4.75, reflecting a more cautious view on future growth and valuation following the recent sector re-rating and the stock's strong run.

Analyst Commentary

Bearish analysts have highlighted a growing disconnect between RPC's recent share price performance and their expectations for the company's medium term earnings power. While demand trends remain generally stable, they argue that the stock now reflects a more optimistic recovery scenario than current fundamentals support.

Several research notes following the latest quarterly update emphasize that, after the sharp rally in October, incremental upside appears more limited without a clear catalyst for sustained margin expansion or market share gains. As a result, some previously constructive views have shifted toward a more neutral stance.

Bearish Takeaways

• Bearish analysts argue that the recent run up in RPC's share price leaves less room for multiple expansion, which makes the stock more vulnerable to any disappointment in upcoming quarters.
• Downgrades to more neutral ratings reflect concerns that near term growth could moderate, with limited visibility on pricing power and activity levels across key basins.
• There is increased focus on execution risk, since even minor operational setbacks or cost inflation could pressure margins and challenge the current valuation framework.
• Some bearish price target revisions point to a reassessment of long term growth assumptions, with analysts modeling slower deployment of capital and a more competitive industry backdrop than previously anticipated.

What's in the News

• Updated buyback disclosure shows that from July 1, 2025 to September 30, 2025, RPC repurchased 0 shares for $0 million, indicating no recent capital deployed toward share repurchases in the latest tranche (company filing).
• Under the long running buyback program announced on March 9, 1998, RPC has cumulatively repurchased 36,809,254 shares, representing 16.61% of shares outstanding, for a total of $514.15 million (company filing).

Valuation Changes

• Fair Value Estimate was reduced modestly from approximately $4.75 to about $4.00 per share, implying a lower upside expectation from current levels.
• The Discount Rate increased slightly from roughly 7.00 percent to about 7.14 percent, reflecting a marginally higher required return in the valuation model.
• Revenue Growth was revised down significantly from around 10.15 percent to about 2.13 percent, signaling a much more conservative outlook for top line expansion.
• Net Profit Margin was raised moderately from roughly 3.63 percent to about 4.35 percent, indicating expectations for incremental efficiency and profitability improvements.
• Future P/E was lowered from about 20.3x to roughly 16.0x, suggesting a more conservative multiple applied to forward earnings.