There’s a lot to be optimistic about in the Materials sector as 3 analysts just weighed in on Newfield (NYSE:NFX), MasTec (NYSE:MTZ) and Trecora Resources (NYSE:TREC) with bullish sentiments.
Newfield (NFX)
B.Riley FBR analyst Rehan Rashid assigned a Buy rating to Newfield yesterday and set a price target of $48. The company’s shares opened today at $21.87.
Rashid commented:
“Though NFX shareholders frustrated by sustained underperformance might be relieved with a takeout, we believe that the transaction is fairly valued on 2019E EV/EBITDA multiples but that it significantly undervalues the NFX platform on NAV. We will be reviewing combined company metrics to judge whether the all-stock deal will preserve NFX’s unrealized intrinsic value.”
According to TipRanks.com, Rashid is a 4-star analyst with an average return of 7.6% and a 60.0% success rate. Rashid covers the Basic Materials sector, focusing on stocks such as Range Resources Corp, Resolute Energy Corp, and Southwestern Energy.
Newfield has an analyst consensus of Moderate Buy, with a price target consensus of $31.14, which is a 42.4% upside from current levels. In a report released yesterday, Williams Capital also maintained a Buy rating on the stock with a $44 price target.
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MasTec (MTZ)
B.Riley FBR analyst Alex Rygiel reiterated a Buy rating on MasTec today and set a price target of $71. The company’s shares opened today at $47.73.
Rygiel noted:
“Last night (11/1) after the close, MasTec (MTZ) announced 3Q18 results that were better than our estimates, management’s guidance, and consensus. As such, the company modestly raised full-year 2018 estimates. But most important, the company has collected on several very large receivables in October, such that any bear-case regarding the receivables risk is now powerfully put to rest in our opinion. We continue to believe that MTZ will outgrow most, if not all, of its end markets and deliver superior shareholder value over time. We reiterate our Buy rating and $71 price target.”
According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 7.6% and a 55.6% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for MasTec with a $62.67 average price target, representing a 31.3% upside. In a report released today, Robert W. Baird also maintained a Buy rating on the stock with a $52 price target.
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Trecora Resources (TREC)
B.Riley FBR analyst Sarkis Sherbetchyan reiterated a Buy rating on Trecora Resources today and set a price target of $14. The company’s shares opened today at $9.75, close to its 52-week low of $9.66.
Sherbetchyan wrote:
“PT) reported 3Q results after market close on Wednesday, 10/31, and hosted its earnings call Thursday morning. Shares closed 10% lower (vs. +2% for the Russell 2000) as 3Q adj. EBITDA missed expectations due to higher feedstock costs and operating expenses. TREC also absorbed non-recurring expenses associated with the new advanced reformer unit, which experienced disruptions and will be shut down for a change in the catalyst. TREC expects to resume operations in 1Q19 and generate ~$6M in incremental EBITDA contribution from this unit in FY19. For more information on TREC’s 3Q results, refer to our 10/31 flash note. We highlight: prime product volumes returned to growth and TREC raised prices in to offset the margin pressure.”
According to TipRanks.com, Sherbetchyan is a 4-star analyst with an average return of 6.8% and a 51.1% success rate. Sherbetchyan covers the Consumer Goods sector, focusing on stocks such as Lightpath Technologies, Vishay Precision Group, and S&W Seed Company.
Currently, the analyst consensus on Trecora Resources is a Moderate Buy with an average price target of $14.
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