Wunderlich Reiterates Buy on Nuverra Environmental Solutions (NES)
Tweet
Share
E-mailGet Alerts NES Hot Sheet
Price: $2.15 --0%
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 20 | New: 25
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 20 | New: 25
Join SI Premium – FREE
Wunderlich Securities reiterated a Buy rating on Nuverra Environmental Solutions (NYSE: NES) with a price target of $40.00. Comments follow Q4 results, which analyst Michael E. Hoffman described as better than expected.
"We reaffirm our Buy rating and $40 target price on the shares of Nuverra Environmental. A solid 4Q13 performance, definitive agreement for the sale of TFI and an optimistic, without being reckless, outlook for 2014 supports significant upside in the share price. Weather was a factor in 4Q13 but is even more relevant in 1Q14 with AEBITDA forecast down sequentially about 20%. This displaced activity is mostly recovered and made up with overall strong organic growth in the Bakken and Utica/Marcellus across the remaining three periods in 2014.
"NES is selling TFI for a far better price than the market could ever imagine. Assuming that the TFI working capital will not prove a problem, TFI has some very aged receivables, then NES gets $165 million of cash. It pays down the revolver in full, even if only for a short time period. We estimate that TFI accounted for sales and EBITDA in 1Q13, 2Q13, 3Q13, 4Q13 and FY13 of $28.8mm, $30.5mm, $27.1mm, $29.6mm, $116.3mm and $3.8mm, $5.0mm, $3.5mm, $2.4mm, $14.7mm, respectively. PFO prices are coming down which would provide upside to the 2013 EBITDA based on a 50 million gallon run rate," he added.
For an analyst ratings summary and ratings history on Nuverra Environmental Solutions click here. For more ratings news on Nuverra Environmental Solutions click here.
Shares of Nuverra Environmental Solutions closed at $17.99 yesterday.
"We reaffirm our Buy rating and $40 target price on the shares of Nuverra Environmental. A solid 4Q13 performance, definitive agreement for the sale of TFI and an optimistic, without being reckless, outlook for 2014 supports significant upside in the share price. Weather was a factor in 4Q13 but is even more relevant in 1Q14 with AEBITDA forecast down sequentially about 20%. This displaced activity is mostly recovered and made up with overall strong organic growth in the Bakken and Utica/Marcellus across the remaining three periods in 2014.
"NES is selling TFI for a far better price than the market could ever imagine. Assuming that the TFI working capital will not prove a problem, TFI has some very aged receivables, then NES gets $165 million of cash. It pays down the revolver in full, even if only for a short time period. We estimate that TFI accounted for sales and EBITDA in 1Q13, 2Q13, 3Q13, 4Q13 and FY13 of $28.8mm, $30.5mm, $27.1mm, $29.6mm, $116.3mm and $3.8mm, $5.0mm, $3.5mm, $2.4mm, $14.7mm, respectively. PFO prices are coming down which would provide upside to the 2013 EBITDA based on a 50 million gallon run rate," he added.
For an analyst ratings summary and ratings history on Nuverra Environmental Solutions click here. For more ratings news on Nuverra Environmental Solutions click here.
Shares of Nuverra Environmental Solutions closed at $17.99 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- onsemi downgraded by TD Cowen after Synaptics deal clouds growth story
- Argus Starts SpaceX (SPCX) at Hold
- MakeMyTrip (MMYT) PT Raised to $84 at Goldman Sachs
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Bakken Formation, Wunderlich Securities, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
