UPDATE: Wunderlich Securities Reiterates On Hi-Crush Partners LP As Stock Enters Low Oil Price Environment

Loading...
Loading...
In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on
Hi-Crush Partners LPHCLP
, but lowered the price target from $66.00 to $53.00. In the report, Wunderlich Securities noted, “As we enter a low oil price environment, we believe there could be significant adjustments to the E&P budgets as producers strive to stay within their cash flow limits. The ripple effect could dent the margins of Hi-Crush (HCLP) which otherwise is well shielded by its robust take-or-pay contracts. The lingering effects of the proposed HAL-BHI merger could further add downward pressure to its margins, however, we don't deem that to be a near-term risk. In order to capture the increased uncertainty we are tweaking our estimates and lowering our price target from $66 to $53. We however, maintain a Buy rating on the stock as we believe HCLP offers a relatively more stable outlook to investors given its strong coverage ratio and robust contracts in place.” Hi-Crush Partners LP closed on Tuesday at $37.97.
Posted In: Analyst ColorPrice TargetAnalyst RatingsAbhishek SinhaWunderlich Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...