Analysts have been eager to weigh in on the Materials sector with new ratings on Trecora Resources (TREC) and Dril-Quip (DRQ).
Trecora Resources (TREC)
In a report released yesterday, Sarkis Sherbetchyan from B.Riley FBR reiterated a Buy rating on Trecora Resources, with a price target of $12.50. The company’s shares closed yesterday at $8.69.
“We further note: TREC reduced debt by $5.1M during the quarter and ended with a net debt position of $94M. Mgmt. repaid an additional $4M of debt in July, which in our view emphasizes the commitment to continued cash flow generation and de-leveraging.”
According to TipRanks.com, Sherbetchyan is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -5.6% and a 39.1% success rate. Sherbetchyan covers the Consumer Goods sector, focusing on stocks such as Vishay Precision Group, S&W Seed Company, and Ferroglobe PLC.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Trecora Resources with a $12.50 average price target.
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B.Riley FBR analyst Tom Curran maintained a Hold rating on Dril-Quip today and set a price target of $48. The company’s shares closed yesterday at $47.68.
“Given DRQ’s strong 2Q19 results and positive outlook, we’re raising our revenue/EBITDA estimates for 2019 from $385.5M/$26.7M to $410.8M/$44.4M and for 2020 from $476.4M/ $72.4M to $477.1M/$83.3M. On our new 2020 EBITDA estimate, our target multiple of 16.0x lifts our price target from $44 to $48. While we are impressed with DRQ’s cost-saving initiatives, clean balance sheet, and upbeat guidance, we maintain our Neutral rating as we await sustained momentum in orders and/or a more favorable risk/reward profile.”
According to TipRanks.com, Curran is ranked 0 out of 5 stars with an average return of -11.6% and a 34.6% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Solaris Oilfield Infrastructure Inc, Independence Contract Drilling, and Select Energy Services Inc.
Dril-Quip has an analyst consensus of Moderate Sell, with a price target consensus of $46.33, representing a -2.8% downside. In a report issued on July 29, Barclays also maintained a Hold rating on the stock with a $46 price target.
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