B.Riley FBR analyst Lucas Pipes reiterated a Buy rating on US Silica Holdings (SLCA) today and set a price target of $17. The company’s shares opened today at $14.13, close to its 52-week low of $12.89.
“We are maintaining our Buy Rating on U.S. Silica (SLCA) but decreasing our price target from $26 to $17 after updating our estimates. We believe that despite the well-known challenges in the industry, U.S. Silica is currently the best-positioned enterprise given its larger regional frac sand presence, the most developed last-mile logistics platform, and a large industrial sand business. On its recent earnings call, management noted that demand for frac sand has declined quickly in 2H18 as pressure pumpers depleted full-year budgets and takeaway capacity continue to be prevalent. The softer market had a particularly strong impact on the demand for northern white sand. Moving forward, US Silica believes business conditions will continue to decline in 4Q and guided investors to declining margins and flat volumes compared to 3Q18.”
According to TipRanks.com, Pipes is a 3-star analyst with an average return of 2.3% and a 53.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Hallador Energy Company.
Currently, the analyst consensus on US Silica Holdings is a Moderate Buy with an average price target of $20.29, representing a 43.6% upside. In a report issued on October 25, Johnson Rice also maintained a Buy rating on the stock with a $17 price target.
US Silica Holdings’ market cap is currently $1.12B and has a P/E ratio of 9.22. The company has a Price to Book ratio of 0.82.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SLCA in relation to earlier this year.
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U.S. Silica Holdings, Inc. provides commercial silica products. It operates through Oil and Gas Proppants, and Industrial and Specialty Products segments.