UPDATE: D.A. Davidson Initiates Coverage on TETRA Technologies as Prospects Vary
In a report published Friday, D.A. Davidson & Co. analyst Tristan Richardson initiated coverage on TETRA Technologies (NYSE: TTI) with a Neutral rating and $14.00 price target.
In the report, D.A. Davidson & Co. noted, “Technological advancements in drilling methods have allowed access to significant reserves in North America that were previously unreachable. The shift to oil and liquids-rich developments, increased complexity of wells, and rig efficiency have all led to growth in demand for oilfield services despite a stagnant ‘rig count' environment in the U.S. These trends have positive implications for a number of TETRA's service offerings, particularly in Fluids and contract compression. We look for revenue and earnings growth over the next several years from TETRA as the company's Fluids and Compressco operations should provide revenue growth and margin improvement. Additionally, we look for margin improvement in the company's offshore business upon completion of a planned asset retirement program, which has negatively impacted this business. We look for modest growth in the company's production testing operations as this market appears subject to the most competitive pressures and the company works to reduce costs.”
TETRA Technologies closed on Thursday at $12.75.
Latest Ratings for TTI
|Aug 2016||Morgan Stanley||Initiates Coverage on||Overweight|
|Jul 2016||Credit Suisse||Assumes||Outperform|
|Jun 2016||Credit Suisse||Upgrades||Neutral||Outperform|
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