Cowen Cuts Price Target on U.S. Silica (SLCA) Following 3Q

Cowen reiterated an Outperform rating on U.S. Silica Holdings (NYSE: SLCA), and cut the price target to $27.00 (from $30.00), following the company's 3Q earnings results and conference call. October volumes have been strong and at this point look like they could be above 3Q levels, however management cautioned that they expect a steep reduction in 4Q as year-end activity slows across the oilfield.

Analyst Marc Bianchi commented, "We model $5 margins in 4Q and a modest recovery in 2016 and 2017. Even if a recovery is deferred, SLCA has a stable industrial business and a large cash balance to weather the downturn. With competitors exiting the market, we think fundamentals and U.S. Silica's market share could exceed expectations."

For an analyst ratings summary and ratings history on U.S. Silica Holdings click here. For more ratings news on U.S. Silica Holdings click here.

Shares of U.S. Silica Holdings closed at $17.91 yesterday.

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