Analysts Offer Insights on Materials Companies: Superior Energy (SPN) and US Silica Holdings (SLCA)


There’s a lot to be optimistic about in the Materials sector as 2 analysts just weighed in on Superior Energy (SPN) and US Silica Holdings (SLCA) with bullish sentiments.

Superior Energy (SPN)

In a report issued on February 20, Mike Urban from Seaport Global reiterated a Buy rating on Superior Energy, with a price target of $8. The company’s shares opened today at $5.08.

According to TipRanks.com, Urban is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -11.9% and a 33.5% success rate. Urban covers the Basic Materials sector, focusing on stocks such as Solaris Oilfield Infrastructure Inc, Natural Gas Services Group, and C&J Energy Services Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Superior Energy with a $6.41 average price target, which is a 26.2% upside from current levels. In a report issued on February 19, Piper Jaffray also reiterated a Buy rating on the stock with a $7.50 price target.

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US Silica Holdings (SLCA)

B.Riley FBR analyst Lucas Pipes reiterated a Buy rating on US Silica Holdings today and set a price target of $19. The company’s shares opened today at $15.38.

Pipes wrote:

“We are maintaining our Buy rating and increasing our U.S. Silica Holdings (SLCA) price target from $17 to $19 following the company’s earnings release and FY 2019 outlook. US Silica reported a fourth-quarter beat with $68M in adjusted EBITDA versus consensus of $54.6M. While the company realized flat proppant volumes sequentially of 3.7M tons, average revenue per ton in the Oil & Gas segment continued to weaken at $65.8/ton (-17% from the prior quarter). When taking out service revenue from the Oil & Gas segment, average frac sand prices were $48.5/ton compared to $59.6/ton in 3Q18. While the company experienced normal seasonal weakness in the industrial sand segment, relative performance was strong and SLCA only realized slight declines in total contribution margin sequentially.”

According to TipRanks.com, Pipes is a 3-star analyst with an average return of 1.4% and a 49.4% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, CONSOL Coal Resources LP, and Teck Resources Limited.

Currently, the analyst consensus on US Silica Holdings is a Moderate Buy with an average price target of $17.43, a 13.3% upside from current levels. In a report issued on February 20, Cowen & Co. also maintained a Buy rating on the stock with a $23 price target.

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