B.Riley FBR Reaffirms Their Buy Rating on Energy Recovery (ERII)

By Austin Angelo

In a report released today, Tom Curran from B.Riley FBR reiterated a Buy rating on Energy Recovery (ERIIResearch Report). The company’s shares opened today at $8.80.

Curran commented:

“For 4Q18, ERII delivered an across-the-board beat on another quarter of stronger-than- expected Water results, generating revenue, $0.04 versus consensus of $13.8M, $0.2M, and $0.01. We believe these results, management’s supportive update on both the Water division’s position within the SWRO (salt water reverse osmosis) desal market and the VorTeq team’s progress towards a resumption of the M1 (Milestone 1) test, and ERII’s robust balance sheet (no debt, cash of $95M) firmly reinforce our thesis. Our EBITDA/EPS estimates for 2019 and 2020 remain the same. Reiterate Buy rating and $15 price target, with 2019 catalysts expected to include a successful completion of M1.”

According to TipRanks.com, Curran ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -10.2% and a 37.2% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Select Energy Services Inc, Ranger Energy Services Inc, and Tetra Technologies.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Energy Recovery with a $13 average price target, which is a 47.7% upside from current levels. In a report issued on March 8, JMP Securities also reiterated a Buy rating on the stock with a $13 price target.

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Based on Energy Recovery’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $2.4 million. In comparison, last year the company had a net profit of $11.63 million.

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Energy Recovery, Inc. engineers, designs, manufactures and supplies solutions for industrial fluid flow processes. It operates through Water; and Oil & Gas segments. The Water segment represents the solutions sold for use in reverse osmosis desalination.