Eco-Stim Energy Solutions Receives a Buy from B.Riley FBR

In a report issued on May 21, Tom Curran from B.Riley FBR maintained a Buy rating on Eco-Stim Energy Solutions (NASDAQ: ESES), with a price target of $2.25. The company’s shares closed yesterday at $0.90, close to its 52-week low of $0.80.

Curran wrote:

“ESES reported 1Q18 results the close. Revenue and EBITDA came in lower than expected, driven by weather-related downtime for U.S. fleet #2 and extended idle time for U.S. fleet #1. Gross margin losses in Argentina improved to ($0.3M) in 1Q18 from ($1.4M) in 4Q17. Regarding the contract negotiation with YPF, ESES announced that it expects to be released from further obligations under that contract within 90 days. This development will allow ESES to finally explore profitable alternatives for its Argentina assets. Management indicated that it expects the company to be gross margin positive in 2Q18 and forecasts a strong 2H18. We maintain our Buy rating but lower our price target, from $2.75 to $2.25, to reflect heightened uncertainty regarding the Argentina frac spread.”

According to TipRanks.com, Curran is a 1-star analyst with an average return of -0.2% and a 53.1% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Select Energy Services Inc, and Helmerich & Payne.

Eco-Stim Energy Solutions has an analyst consensus of Moderate Buy, with a price target consensus of $1.63.

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The company has a one-year high of $1.74 and a one-year low of $0.80. Currently, Eco-Stim Energy Solutions has an average volume of 151.1K.

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Eco-Stim Energy Solutions, Inc. is an oilfield services company, which engages in the provision of well stimulation, coiled tubing, and field management services to the upstream oil and gas industry. It operates through the United States and Argentina geographical segments. The company was founded on November 20, 2003 and is headquartered in Houston, TX.