Roth Capital Cuts Nuverra Price Target Due To Lower Capital Spending By Exploration And Production Companies


In a research report issued today, Roth Capital analyst Gerry Sweeney maintained a Buy rating on Nuverra Environmental (NYSE:NES), but reduced his price target to $16 (from $20), which still represents a potential upside of 152% from where the stock is currently trading.

Sweeney noted, “The decline in oil prices and potential impact was center stage in discussions. While oil prices are a concern, we believe Nuverra’s strategy to shift away from commoditized logistics services towards higher margin environmental services remains intact.”

The analyst added, “In light of expected capital spending reductions, we reduce our2015 revenue from $578 mm to $556 mm and EBITDA from $118.m to$107.8 mm.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gerard Sweeney has a total average return of 1.3% and a 57.1% success rate. Sweeney has a -51.6% average return when recommending NES, and is ranked #2039 out of 3440 analysts.

 

 

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