In a report released today, Lucas Pipes from B.Riley FBR maintained a Hold rating on Hi-Crush Partners (HCLP), with a price target of $3. The company’s shares closed yesterday at $2.66, close to its 52-week low of $2.58.
Pipes wrote:
“We are maintaining our Neutral rating and lowering our price target from $5.50 to $3 following Hi-Crush Partners’ 1Q19 earnings results. In 1Q19, HCLP reported adjusted EBITDA of $16.2M, below our estimate of $22.9M. The company realized lower-than-expected prices for frac sand of $48/ton (-17% decline q/q), driven by changes in sales mix, as well as pricing contracts at Kermit being renegotiated (as previously disclosed.) In the last-mile business, Hi-Crush increased revenue by 2.6% to $38.2M; however, overall utilization in the PropStream program was down from the prior quarter with 24% of sales sold at the well site through PropStream. While the company has been successful at increasing its overall revenue per crew in the past two quarters, we think the sharp reduction in crew count is concerning.”
According to TipRanks.com, Pipes is a 2-star analyst with an average return of 0.5% and a 46.7% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and CONSOL Coal Resources LP.
The word on The Street in general, suggests a Hold analyst consensus rating for Hi-Crush Partners with a $3.50 average price target, implying a 31.6% upside from current levels. In a report released today, AltaCorp Captial also upgraded the stock to Hold.
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Hi-Crush Partners’ market cap is currently $268.9M and has a P/E ratio of 3.00. The company has a Price to Book ratio of 0.33.
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Hi-Crush Partners LP engages in the production of monocrystalline sand. It owns, operates, and develops sand reserves and related excavation as well as processing facilities. The firm produces frac sand and specialized mineral.
