Research analysts at R. F. Lafferty assumed coverage on shares of Hi-Crush Partners (NYSE:HCLP) in a research note issued on Wednesday. The brokerage set a “buy” rating and a $23.00 price target on the basic materials company’s stock. R. F. Lafferty’s price target suggests a potential upside of 94.09% from the company’s previous close.
Several other research firms also recently weighed in on HCLP. Credit Suisse Group restated an “outperform” rating and issued a $15.00 price target on shares of Hi-Crush Partners in a research note on Tuesday, October 17th. We think HCLP’s decision to return capital to shareholders ($0.15/unit distribution and $100M buyback) is a critical first step in making the frac sand space investable again. After a euphoric start to 2017, capacity addition concerns (generally and specific to Permian basin sand mines) drove significant underperformance in the frac sand space. Investors look out to 2018 and see the significant cash flow generation potential in the sector, but have worried that cash flow would be used to build new capacity, exacerbating current investor concerns. Our view is that similar moves by other leading frac sand companies (with healthy balance sheets and strong free cash flow profiles into 2018) would go a long way toward re-establishing the sector. UBS Group restated a “buy” rating and issued a $17.00 price target on shares of Hi-Crush Partners in a research note on Saturday, October 21st. The outlook for HCLP has turned more favourable, it reported a 3Q beat, recently announced the reinstatement of its distribution as well as a share buyback, and completed its Kermit facility and Pecos Terminal. Additionally mgmnt guided to 4Q sales volumes in the range of 2.7-2.9MM tons vs. UBSe of 2.6MM tons as it should benefit from the continued ramp of the Kermit facility. We expect HCLPs Propsteam business to continue to be a positive and it noted plans to grow the total number of crews to nine or more from seven by year end. On the pricing front, HCLP noted its expectation for modest improvements through the end of the year. With a 2018 total capex in the range of $35-$45MM and UBSe of more than $100MM of retained DCF, HCLP is 100% self-funded. We look for color on tomorrows call around the features on its credit facility, and hurdles that HCLP needs to pass to allow for the full $100MM of its buyback to be authorized, as well as how we should be thinking about the timing of the buyback. Cowen set a $16.00 price target on Hi-Crush Partners and gave the stock a “buy” rating in a research note on Monday, January 29th. ValuEngine downgraded Hi-Crush Partners from a “buy” rating to a “hold” rating in a research note on Friday, February 2nd. Finally, Zacks Investment Research upgraded Hi-Crush Partners from a “sell” rating to a “hold” rating in a research note on Tuesday, January 16th. Four investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $17.07.
Hi-Crush Partners (NYSE:HCLP) opened at $11.85 on Wednesday. Hi-Crush Partners has a 52 week low of $7.25 and a 52 week high of $23.30. The company has a quick ratio of 1.29, a current ratio of 1.77 and a debt-to-equity ratio of 0.24. The firm has a market capitalization of $1,083.27, a P/E ratio of 37.03 and a beta of 1.04.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Malaga Cove Capital LLC boosted its position in shares of Hi-Crush Partners by 27.1% during the 3rd quarter. Malaga Cove Capital LLC now owns 83,019 shares of the basic materials company’s stock valued at $791,000 after acquiring an additional 17,721 shares during the last quarter. Ninepoint Partners LP bought a new position in shares of Hi-Crush Partners during the 3rd quarter valued at approximately $15,200,000. L & S Advisors Inc boosted its position in shares of Hi-Crush Partners by 161.9% during the 3rd quarter. L & S Advisors Inc now owns 134,575 shares of the basic materials company’s stock valued at $1,278,000 after acquiring an additional 83,200 shares during the last quarter. Covenant Asset Management LLC bought a new position in shares of Hi-Crush Partners during the 4th quarter valued at approximately $444,000. Finally, Clear Harbor Asset Management LLC boosted its position in shares of Hi-Crush Partners by 69.5% during the 3rd quarter. Clear Harbor Asset Management LLC now owns 796,137 shares of the basic materials company’s stock valued at $7,563,000 after acquiring an additional 326,414 shares during the last quarter. Hedge funds and other institutional investors own 40.98% of the company’s stock.
About Hi-Crush Partners
Hi-Crush Partners LP is an integrated producer, transporter, marketer and distributor of monocrystalline sand, a specialized mineral that is used as a proppant to manage the recovery rates of hydrocarbons from oil and natural gas wells. Its reserves consist of northern white sand, a resource in Wisconsin and limited portions of the upper Midwest region of the United States.
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