Maxim Group analyst James Jang initiated coverage with a Buy rating on Profire Energy (NASDAQ: PFIE) today and set a price target of $7. The company’s shares closed yesterday at $4.59.
Jang noted:
“Profire Energy (PFIE) is the dominant player (est. 80% market share) in the Burner Management Systems (BMS) oilfield technology sector. PFIE’s industry leading technology coupled with an improving oil price sentiment could allow for increased penetration for new products (PF3100 series BMS) and its Chemical Management Systems (CMS). Clean balance sheet with zero debt is an ongoing company strategy which has enabled PFIE to survive through market downturns. We believe with new product offerings, PFIE has additional near-term growth catalysts which should lead to further earnings expansion. Therefore, we assume coverage of PFIE with a Buy rating and $7 price target.”
According to TipRanks.com, Jang is a 5-star analyst with an average return of 25.4% and a 48.8% success rate. Jang covers the Services sector, focusing on stocks such as Dynagas LNG Partners LP, Nordic American Tanker, and Eagle Bulk Shipping.
Currently, the analyst consensus on Profire Energy is Strong Buy and the average price target is $5.33, representing a 16.1% upside.
In a report issued on May 18, Roth Capital also reiterated a Buy rating on the stock with a $5 price target.
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Based on Profire Energy’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $1.88 million. In comparison, last year the company had a net profit of $600.1K.
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Profire Energy, Inc. engages in the development of burner-management technologies used on a variety of oilfield natural-draft fire tube vessels in oil and gas industry. It offers line-heaters, dehydrators, separators, treaters, amine reboilers, and free-water knockout systems which facilitate the proper function of the vessel.
