Market Overview

Wells Fargo Makes Bullish Call On Select Energy Services Following Rockwater Merger

Share:
Wells Fargo Makes Bullish Call On Select Energy Services Following Rockwater Merger
Related
61 Biggest Movers From Friday
60 Stocks Moving In Friday's Mid-Day Session
Select Energy Services: Another Outstanding Quarter; Set To Differentiate Itself In 2019 (Seeking Alpha)

Select Energy Services Inc (NYSE: WTTR) completed amerger with Rockwater Energy Solutions Nov. 1. 

The Analyst

Wells Fargo's Judson Bailey is resuming coverage on Select Energy with an Outperform rating and $20 price target.

The Thesis

The Rockwater acquisition is going to be transformative for Select Energy Services, as it significantly expands the company's geographic footprint, customer base and product line diversity, said Bailey. (See Bailey's track record here.)

The analyst said he expects pre-frac water demand to remain solid and forecasts a 37 percent year-over-year revenue increase in 2018 and a 16-percent increase in 2019.

The acquisition will add to Select Energy Services' Permian presence and complement the company's strong presence in Bakken and Eagle Ford with Rockwater's presence in MidCon and the Marcellus/Utica basins, the analyst said. 

The Price Action

The stock spiked around 2.5 percent Tuesday and has been trading in a range from $14 to $17 since late September. It is now trading close to $16.

Related Link:

Your Easy Guide To Credit Suisse's New Top Stocks List 

Latest Ratings for WTTR

DateFirmActionFromTo
Nov 2018Wells FargoMaintainsOutperformOutperform
Sep 2018JP MorganMaintainsNeutralNeutral
Sep 2018CitigroupMaintainsNeutralNeutral

View More Analyst Ratings for WTTR
View the Latest Analyst Ratings

Posted-In: Judson Bailey Wells FargoAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (WTTR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
JBLGoldman SachsUpgrades0.0
IMOBarclaysUpgrades0.0
JRVRKeefe Bruyette & WoodsDowngrades40.0
ADMPB. Riley FBRDowngrades2.5
EAFVertical GroupDowngrades9.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

You Own It: Investors Can Buy Into Eminem's Royalties

How Tokenizing Assets Works