UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on CARBO Ceramics
In a report published Friday, BMO Capital Markets reiterated its Outperform rating on CARBO Ceramics (NYSE: CRR), and raised its price target from $85.00 to $90.00.
BMO Capital Markets noted, “CARBO reported Q4/12 diluted EPS of US$0.89, ex items. This compared with our forecast of US$0.91 and consensus of US$0.86. Revenue of US$153.6 million was modestly ahead of our forecast of US$149.8 million as higher sales volumes and increased Falcon revenue more than offset lower pricing. Total volumes for the quarter of 443 million lbs at ~US$0.32/lb compared with our estimate of 410 million lbs at US$0.36/lb. Operating margins of 37.2% were below our estimate of 39.8%. CARBO's international volumes continue to ramp up, as international sales were up 27% versus Q4/11. The company will also open up an additional distribution facility in the Bakken in the second half of this year, while the Millen, Georgia plant is expected to begin production in Q1/14. The outlook for NA drilling remains cautiously optimistic, with 2013 essentially mirroring 2012. That said, CRR continues to make inroads in markets outside of North America, which should result in continued volume growth even in a flat rig count environment.”
CARBO Ceramics closed on Thursday at $80.11.
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