The Globe and Mail reports in its Thursday, Sept. 14, edition that RBC Dominion Securities analyst Keith Mackey sees Precision Drilling "adding scale at a reasonable price" with its $141-million cash and stock acquisition of CWC Energy Services. The Globe's David Leeder writes in the Eye On Equities column that Mr. Mackey continues to rate Precision Drilling "outperform." The RBC stockpicker advanced his share target by $7 to $125. Analysts on average target the shares at $130.20. Mr. Mackey says in a note: "Netting off about $57-million for the service rig business, we estimate PD has paid approximately $5-million per working drilling rig. This is well below new build cost plus PD has not added additional market capacity. The acquired rigs are primarily not super spec rigs, which has likely been reflected in the price, but may compete for additional capital in a higher-demand environment. We believe improving OFS valuations should unlock additional consolidation across the sector." The Globe says Mr. Mackey views the deal as a step for Precision toward achieving its current debt reduction strategy "as opposed to a pivot." Mr. Mackey adds, "We see room for modest multiple expansion from current levels."