UPDATE: D.A. Davidson & Co. Initiates Coverage on CARBO Ceramics with Neutral Rating, $102 PT on Benefits from Long-Term Growth in Oil/Natural Gas

In a report published Tuesday, D.A. Davidson & Co. analyst Avinash Kant initiated coverage on

with a Neutral rating and $102.00 price target. In the report, D.A. Davidson & Co. noted, “Proppants play an important role in the extraction of oil & natural gas from wells. Hydraulic fracturing, where fluid is pumped down at high pressure to create fractures in the rock formation, has emerged as one of the leading drilling processes. Proppant is the fine granular material that is transported down with the fluid to keep the crack open after the high-pressure pumping has stopped. These proppants keep the crack open and create a perforated channel that facilitates the flow of oil and natural gas throughout the recovery process. Sand, resin-coated, and ceramic are the three primary proppants used in the industry, but ceramic proppants have proven to be the most efficient, resulting in higher return on investment.” CARBO Ceramics closed on Monday at $99.36.