B.Riley FBR Assigns a Hold Rating on Emerge Energy

By Ryan Adsit

B.Riley FBR analyst Lucas Pipes assigned a Hold rating to Emerge Energy (NYSE: EMES) today and set a price target of $9. The company’s shares opened today at $7.45, close to its 52-week low of $5.65.

Pipes said:

“Summary and Recommendation We are initiating coverage of Emerge Energy Services LP (EMES) with a Neutral rating and a 12-month price target of $9 per unit. We believe Emerge’s higher leverage profile versus peers makes the company more dependent on strong sand prices and demand. While we are constructive on 2018 demand and see sand prices trending higher through mid 2018, we believe that Emerge’s equity would perform best in a longer environment of steadily rising sand prices that would allow the partnership to consistently de-lever the balance sheet. The company, in our opinion, has been astute in managing its leverage profile, both during the downturn and now during the recovery. In April 2017, Emerge acquired sand operations near San Antonio that the partnership intends to grow over the years to come.”

According to TipRanks.com, Pipes is a 3-star analyst with an average return of 3.5% and a 51.9% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Stillwater Mining Company.

Emerge Energy has an analyst consensus of Moderate Buy, with a price target consensus of $10.88.

Based on Emerge Energy’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $103 million and quarterly net profit of $5.01 million. In comparison, last year the company earned revenue of $31.29 million and had a GAAP net loss of $26.58 million.

Based on the recent corporate insider activity of 11 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 EMES in relation to earlier this year.

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.

Emerge Energy Services LP engages in the ownership, operation, acquisition and development of a diversified portfolio of energy service assets. It also engages in the businesses of mining, processing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells.