UPDATE: Stifel Reiterates Buy Rating, Raises PT on Emerge Energy Services LP on Multiple Positive Factors

In a report published Thursday, Stifel analyst Selman Akyol reiterated a Buy rating on

, and raised the price target from $21.50 to $31.00. In the report, Stifel noted, “We continue to believe the partnership benefits from a unique opportunity in that it primarily needs to focus on signing up additional capacity (at its Barron facility), while recontracting its existing capacity. Typically, to grow the partnership's operations, we see partnerships needing to spend capital to increase capacity. However, we note EMES has already spent the capital and only needs to fill the existing capacity. At its Barron facility, the partnership had an average utilization of 48% during the quarter. In turn, we are reiterating our Buy rating and raising our target price to $31.00 from $21.50. We arrive at our rounded target price by applying a targeted yield of 11% to our next 12-months DPU estimate of $3.38. We believe this is conservative as its nearest MLP competitor is currently yielding 8.1%.” Emerge Energy Services LP closed on Wednesday at $27.82.