Wunderlich Securities Sees Sand Volume Grow For Emerge Energy Services LP

In a report published Tuesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating and $65.00 price target on

. In the report, Wunderlich Securities noted, "Emerge Energy Services LP (EMES) reported 4Q14 EBITDA of $36.3mm, marginally lagging our estimated $37.8mm and the consensus of $37.3mm. Sand volumes exceeded our estimates, but the gains were more than offset by lower margins from the fuel segment. Distributable cash flow of $1.39/unit was in line with our estimate and distribution was up 2% sequentially to $1.41/unit. Management indicated there were some internal control lapses (filed in 10K) attributed to its fast growth in such a short time while continuing to run a lean organization; however, there was no material default reported. We believe the market has already factored in a significant softness in sand demand than what we are actually seeing in volumes. We reiterate our Buy rating on EMES shares." Emerge Energy Services LP closed on Monday at $51.35.