Market Overview

Raymond James Downgrades ProPetro Holding, Says Stock Prices In Outperformance

Raymond James Downgrades ProPetro Holding, Says Stock Prices In Outperformance

ProPetro Holding Corp’s (NYSE: PUMP) fourth quarter reflected its consistent frac fleet utilization and superior performance to peers, according to Raymond James. 

While the company is likely to generate industry-leading profitability in 2019, this is already priced into its stock, the sell-side firm said in a Thursday downgrade note. 

The Analyst

Raymond James’ Praveen Narra downgraded ProPetro Holding from Strong Buy to Outperform while maintaining a $25 price target.

The Thesis

ProPetro has been reporting market-leading results, which underlines its differentiation in the Permian as well as the resilience of its partnership business model, Narra said in the downgrade note. 

ProPetro outperformed peers even as the overall pressure pumping industry faltered in late 2018, the analyst said. 

With an oil price recovery expected in 2019, there could be some normalization of ProPetro's earnings power versus its peers, he said. 

In the fourth quarter, ProPetro achieved annualized EBITDA per hydraulic horsepower of $425 versus the peer group’s annualized $220 per HHP. This represented the highest outperformance in the history of these companies being public. Narra said. 

This discrepancy will contract, with ProPetro’s earnings outperforming the peer group by around $130 per horsepower in 2019, the analyst said. 

ProPetro’s share price already incorporates a substantial premium, according to Raymond James.

Price Action

ProPetro shares were down 0.41 percent at $21.79 at the time of publication Thursday. 

Related Links:

RayJay On Schlumberger: North American Market Seems To Have Bottomed, International To Lead Growth In Second Half 

Baker Hughes Reports Biggest Cut Of Oil Rigs In 3 Years 

Latest Ratings for PUMP

Aug 2019ReiteratesNeutral
Aug 2019DowngradesBuyNeutral
May 2019Initiates Coverage OnBuy

View More Analyst Ratings for PUMP
View the Latest Analyst Ratings

Posted-In: Oil Praveen Narra Raymond JamesAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (PUMP)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
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.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

FANG Stocks Flying As Nirvana Spreads In The Tech Sector

44 Stocks Moving In Thursday's Mid-Day Session