Analysts have been eager to weigh in on the Materials sector with new ratings on TransMontaigne (NYSE:TLP) and Select Energy Services Inc (NYSE:WTTR).
TransMontaigne (TLP)
B.Riley FBR analyst Robert Balsamo maintained a Hold rating on TransMontaigne yesterday and set a price target of $44. The company’s shares opened today at $38.60.
Balsamo commented:
“TLP (Neutral, $44 PT) reported adj. EBITDA of $33.8M, 3% below B. Riley FBR’s estimate of $34.9M. Distributable cash flow of $21.2M was 15% below our estimate of $24.9M and provided 1.24x distribution coverage of the $0.795 per unit distribution for the quarter, which was up 1.3% Q/Q. EBITDA and DCF are up Y/Y due to recent capital expenditures. Most notably during the quarter, TLP received a takeout offer from ArcLight. We will look for more color on this morning’s conference call, as the outcome of this effort is undetermined at this point.”
According to TipRanks.com, Balsamo has currently no stars on a ranking scale of 0-5 stars, with an average return of -6.9% and a 45.9% success rate. Balsamo covers the Basic Materials sector, focusing on stocks such as EnLink Midstream Partners, EnLink Midstream LLC, and Nustar Energy LP.
Currently, the analyst consensus on TransMontaigne is a Hold with an average price target of $45.
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Select Energy Services Inc (WTTR)
B.Riley FBR analyst Tom Curran maintained a Buy rating on Select Energy Services Inc yesterday and set a price target of $24. The company’s shares opened today at $14.59.
Curran said:
“Select Energy Services (WTTR) reported revenue and adjusted EBITDA of $393.2M and $68.2M (17.3% margin), up from 1Q18’s $376.4 and $59.6M (15.8%) and versus the $64.5M (15.9%). Thus, for its 5th quarter out of 6 as a public company, WTTR has delivered EBITDA upside. Sequentially, the core Chemicals divisions grew their top lines by 6% and 2%, respectively, while the de-emphasized Wellsite Services saw its revenues shrink 1%. We suspect consensus was looking for slightly higher revenues for Oilfield Chemicals and/or Wellsite Services. Sequentially, gross margin rebounded for 100 bps from 24.6% to 25.6% and for 390 bps from 15.9% to 19.8%, but contracted for 60 bps from 10.3% to 9.7%.”
According to TipRanks.com, Curran is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -3.0% and a 50.3% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Diamond Offshore Drilling, and Eco-Stim Energy Solutions.
Select Energy Services Inc has an analyst consensus of Strong Buy, with a price target consensus of $23.13.
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