KeyBanc Starts FMSA Holdings (FMSA) at Buy

KeyBanc initiates coverage on FMSA Holdings (NYSE: FMSA) with a Buy rating and a price target of $20.00.

Analyst Robin Shoemaker said, "The frac sand demand profile continues to be enhanced by the evolving technologies of horizontal drilling and hydraulic fracturing. Over the past five years, demand for frac sand and other types of proppant has been propelled by steady increases in the horizontal rig count, in the average number of horizontal wells drilled per rig per year, in the average length of horizontal laterals and in the average number of frac stages per foot of lateral. According to multiple industry studies and surveys, these four factors combined to produce a 25% CAGR in frac sand consumption from 2008-2013. Now, we are seeing a fifth accelerator in demand for frac sand that we think is even more powerful than the other four (see Figure 2). The latest catalyst for frac sand consumption is an innovation in horizontal well design that emphasizes proppant density as a cost-effective means to achieve higher and more sustainable volumes of oil production."

For an analyst ratings summary and ratings history on FMSA Holdings click here. For more ratings news on FMSA Holdings click here.

Shares of FMSA Holdings closed at $13.73 yesterday.

You May Also Be Interested In

• Morgan Stanley Upgrades Telecom Argentina (TEO) to Overweight
• Odysight.AI Inc. (ODYS) PT Lowered to $6 at Benchmark
• Cantor Fitzgerald Starts Silence Therapeutics (SLN) at Overweight