UPDATE: D.A. Davidson Raises PT on Northwest Pipe Company on Evaluating Alternatives for OCTG Assets
In a report published Wednesday, D.A. Davidson & Co. analyst Brent Thielman reiterated a Buy rating on Northwest Pipe Company (NASDAQ: NWPX), and raised the price target from $36.00 to $42.00.
In the report, D.A. Davidson & Co. noted, “Northwest Pipe (NWPX) announced the company has retained Raymond James to evaluate strategic alternatives for its oil country tubular goods (OCTG) business. This could include acquisitions, joint ventures or a sale of certain assets. Given NWPX's relatively small size in the OCTG market, the announcement appears to reflect recognition of a need for greater scale to improve its competitive position or otherwise exit the market. NWPX manufactures OCTG products at its Bossier City, LA and Houston, TX facilities, with combined estimated capacity of 175,000 tons per year. Significant import pressure in recent years has led to weak results for these operations, which are included in the Tubular Products segment. While a trade case is pending for these specific products, nothing is assured. In addition, other participants have or are planning to add capacity in OCTG in North America in the coming years.”
Northwest Pipe Company closed on Tuesday at $33.24.
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