Companies in the Materials sector have received a lot of coverage today as analysts weigh in on Pan American Silver (PAAS) and Select Energy Services Inc (WTTR).
Pan American Silver (PAAS)
In a report released yesterday, Adam Graf from B.Riley FBR maintained a Hold rating on Pan American Silver, with a price target of $13.40. The company’s shares closed yesterday at $17.31, close to its 52-week high of $17.48.
Graf noted:
“After the market close on 8/7, PAAS reported 2Q results, which included the impact of the Tahoe acquisition completed 2/22. $0.04 beat consensus expectations of $0.03, but missed our estimate of $0.05/sh – largely on weaker production and sales volumes. However, accounting is still a challenge due to the acquisition. Management highlighted early exploration results at La Colorada, announced August 1, which indicate a significant silver-lead-zinc resource at depth. We maintain our Neutral rating and $13.40/sh 12-mo target price.”
According to TipRanks.com, Graf is a 3-star analyst with an average return of 3.5% and a 47.6% success rate. Graf covers the Basic Materials sector, focusing on stocks such as Gold Standard Ventures Corp, Newmont Mining Corporation, and First Majestic Silver.
Pan American Silver has an analyst consensus of Moderate Buy, with a price target consensus of $17.70.
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Select Energy Services Inc (WTTR)
B.Riley FBR analyst Tom Curran maintained a Buy rating on Select Energy Services Inc today and set a price target of $17. The company’s shares closed yesterday at $8.52.
Curran wrote:
“Given the new U.S. land macro outlook for 2H19 and water service rates finally succumbed to months of building pressure in 2Q (with any pricing reversal requiring pickup in activity first and then recovering with a lag), we cut Select Energy Services’ (WTTR) revenue/adj. EBITDA for (1) 2019 from $1.50B/$239M to $1.33B/$200M, and (2) 2020 from $1.75B/$345M to $1.55B/ $290M. On new 2020E, our target EV/EBITDA multiple of 6.0x lowers our PT from $19 to $17. We maintain Buy on cheap valuation relative to its proven FCF-generative model, net cash position, and strategic priority of expanding earnings power by investing in water infrastructure assets, where it earns the highest margins, expects the Delaware-II system to start up in 4Q19, and seems to anticipate a new project award by early 2020.”
According to TipRanks.com, Curran is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -11.4% and a 34.1% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Solaris Oilfield Infrastructure Inc, Independence Contract Drilling, and Ranger Energy Services Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Select Energy Services Inc with a $12.50 average price target, representing a 46.7% upside. In a report issued on August 7, RBC Capital also maintained a Buy rating on the stock with a $10 price target.
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