UPDATE: Miller Tabak Initiates Coverage on U.S. Silica Holdings with Buy Rating, $82 PT on Positive Outlook

In a report published Monday, Miller Tabak analyst Sonny Randhawa initiated coverage on

with a Buy rating and $82.00 price target. In the report, Miller Tabak noted, “We are initiating coverage of SLCA with a Buy rating and a 12 month price target of $82. We believe E&P companies are just starting to understand the benefits that increased reservoir contact has on ultimate recovery and expect a step change in frac sand demand as companies move up the learning curve. We expect frac sand demand to reach 84MM tons by 2016. We believe SLCA is one of the best ways to play this growth due to its aggressive capacity expansion plans and industry leading logistics and transload network.” U.S. Silica Holdings closed on Friday at $63.44.