UPDATE: Wunderlich Securities Upgrades Hi-Crush Partners LP to Buy, Reiterates $66 PT on Great Opportunity in Sell-Off

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha upgraded the rating on

from Hold to Buy, and reiterated the $66.00 price target. In the report, Wunderlich Securities noted, “The recent pullback in oil prices that has impacted E&P stocks has also taken a huge toll on the frac sand stocks. Critically, the fall in sand stocks this month, in particular Hi-Crush Partners LP (HCLP), is much greater than the drop in oil prices and the E&P index. However, we believe, demand for Northern White Sand remains inelastic in the near term. In our opinion, HCLP has predictable growth and solid fundamentals, which at current valuation, supports our upgrade and Buy rating on the stock. Though we expect improving oil prices to further support fundamentals and continue to prefer Emerge Energy (EMES-$110.98, Buy) to HCLP on a risk-adjusted basis, we believe HCLP could be more interesting for investors with a more bearish outlook for crude.” Hi-Crush Partners LP closed on Tuesday at $53.70.