UPDATE: Jefferies Raises PT on Energy Recovery on Significant Hurdles to the Next Triple

In a report published Monday, Jefferies analyst Laurence Alexander reiterated a Hold rating on

, and raised the price target from $4.70 to $8.00. In the report, Jefferies noted, “Recipe for another triple: High incremental margins (>50%?), limited expected capex (25% utilization rate), rapid growth in its core market (desal installations could expand 2x-3x in 5 years), and broad themes (‘harvesting fluid pressure' in high-pressure and toxic environments). What is missing? 4-6 quarters of execution, proving profitability and evidence it can forestall competitors. Reiterate Hold.” Energy Recovery closed on Friday at $7.12.