UPDATE: Jefferies Initiates Coverage On FMSA Holdings On Proven Proppant Platform

In a report published Monday, Jefferies analyst Brad Handler initiated coverage on

with a Buy rating and $13.00 price target. In the report, Jefferies noted, “As a top proppant producer (#2 and #1 by capacity in raw sand and RCS markets, respectively) with innovative technologies and best-in-class logistics, FMSA appears well-positioned to meet both growing frac intensity and evolving completion designs. While we model supply outpacing demand with pricing pressure through '15, FMSA's portfolio breadth and track record support longer-term value; we initiate with a Buy rating and $13 PT.” FMSA Holdings closed on Friday at $9.56.