This analyst loves McCoy Global

Beacon Securities analyst Russell Stanley said a planned leadership transition at McCoy Global (McCoy Global Stock Quote, Chart, News, Analysts, Financials TSX:MCB) appears orderly and continuity-focused.

On March 2, the company announced that COO Bing Deng will become CEO and President upon Jim Rakievich’s retirement in May. Deng is also expected to be nominated for election to the board at the next AGM. Rakievich has served as CEO and director since 2002, while Deng has been with the company for more than 20 years and has held the COO role since January 2024.

“We view this development as a well-planned succession, with Mr. Deng bringing considerable continuity and operational knowledge,” Stanley said.

Stanley maintained his “Buy” rating and $5.50 target for McCoy.

McCoy Global develops and sells equipment used for tubular running services.

Stanley is looking for Q4 revenue of $21.2-million, Adjusted EBITDA of $3.9-million and diluted EPS of $0.06 when the company reports results Friday before the open. He also expects operating cash flow of $3.4-million, with a working capital build tied to higher revenue. Backlog at the end of Q3 stood at $28.0-million, up from $25.0-million in Q2, with Q3 orders of $17.4-million implying a 1.2x book-to-bill.

Beyond the quarter, Stanley pointed to improving sentiment in oilfield services equities. The VanEck Oil Services ETF and major service names have recently made new 52-week highs despite tempered 2026 outlooks from larger peers.

“MCB has been lagging OIH on a currency-adjusted basis for some time, setting up a potential catch-up trade opportunity,” he said.

A potential catalyst could come from contract awards tied to McCoy’s smartCRT product, which has received technical approval from a major national oil company. With multiple drilling contracts set to expire in Q3/26, Stanley estimates an Eastern Hemisphere opportunity of approximately 100 rigs. At roughly US$750,000 per unit, that implies a market opportunity of about US$75.0-million, or roughly $100.0-million.

McCoy currently trades at 3.8x Stanley’s 2026 Adjusted EBITDA forecast, a 47% discount to a 7.1x multiple for Weatherford International.

Stanley expects McCoy to generate $14.0-million in Adjusted EBITDA on revenue of $79.0-million in fiscal 2025, improving to $23.0-million in EBITDA on revenue of $91.0-million in fiscal 2026.

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