UPDATE: Stifel Upgrades TETRA Technologies Inc. (TTI) to Buy

Stifel analyst Stephen Gengaro upgraded TETRA Technologies Inc. (NYSE: TTI) from Hold to Buy with a price target of $3.00 (from $1.00).

The analyst comments "We believe TTI's divestiture of CCLP is a game changer. We are raising our target price on TETRA to $3 from $1 and upgrading the shares to Buy. The keys to our Buy include: 1) the sale of the majority of CCLP allows TETRA to de-consolidate CCLP financials, including its high debt levels; 2) the divestiture significantly simplifies the story; 3) standalone TETRA has several solid businesses with good growth opportunities; and 4) the simpler story with a higher quality business mix should lead to multiple expansion. We are raising our TETRA-only EBITDA for 2021-22 to $57.5 million and $73.8 million from $39.0 million and $57.1 million, respectively. Our $3 target price is based our revised estimates and higher multiples using our sum-of-the parts analysis."

For an analyst ratings summary and ratings history on TETRA Technologies Inc. click here. For more ratings news on TETRA Technologies Inc. click here.

Shares of TETRA Technologies Inc. closed at $1.93 yesterday.

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