FBR Capital Thinks Energy Recovery’s Stock is Going to Recover

By Carrie Williams

FBR Capital analyst Tom Curran reiterated a Buy rating on Energy Recovery (NASDAQ: ERII) today and set a price target of $16. The company’s shares opened today at $8.36, close to its 52-week low of $7.22.

Curran observed:

“Heading into the NDR that FBR will host this week with President and CEO Joel Gay, CFO Chris Gannon, and Managing Director, IR and Corporate Development Brian Uhlmer, we are updating our model for 4Q16 results (our annual EPS/EBITDA are unchanged) and highlighting several topics for ERII’s oil & gas division that our meetings should delve into and further explicate. We believe 2017 will reaffirm ERII’s extraordinary oil & gas growth potential and that the stock is offering compelling risk/reward at its current level.”

According to TipRanks.com, Curran is a 1-star analyst with an average return of -0.8% and a 47.6% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Diamond Offshore Drilling, and Oceaneering International.

Energy Recovery has an analyst consensus of Strong Buy, with a price target consensus of $20.

The company has a one year high of $16.67 and a one year low of $7.22. Currently, Energy Recovery has an average volume of 424.7K.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ERII in relation to earlier this year. Earlier this month, Robert Yu Lang Mao, a Director at ERII bought 20,000 shares for a total of $150,600.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Energy Recovery, Inc. engages in the development, manufacture, and sale of energy recovery devices. It operates through the Water; and Oil & Gas segments. The Water segment deals with reverse osmosis water desalination, circulation pumps, pressure exchanger, and turbochargers. The Oil & Gas segments manages hydraulic fracturing and gas processing plants. The company was founded in April 1992 and is headquartered in San Leandro, CA.