Goldman Sachs Downgrades Atlas Energy Solutions Inc (AESI) to Neutral, 'Following YTD Outperformance'

Goldman Sachs analyst Neil Mehta downgraded Atlas Energy Solutions Inc (NYSE: AESI) from Buy to Neutral with a price target of $21.00.

The analyst comments "Following YTD outperformance in AESI (+30% vs OIH), we believe shares are fairly valued at current levels, and, as such, are downgrading the stock from Buy to Neutral. While management noted the potential for incremental growth projects with the 3Q24 earnings call, following the commissioning of the Dune Express and authorization of $200 mil in share repurchases, we believe the more immediate catalysts in the near-term have played out. Additionally, we are adjusting our EBITDA estimates for 2025/2026 by -24%/-15% to reflect higher mining costs, delayed full utilization on the Dune Express vs our previous expectations, and softer activity outlook in US land. Given our adjusted estimates, we are lowering our price target from $23 to $21. While we remain constructive on the company's capital return profile and estimate an 8% capital return yield, we view total return of 3% as relatively less attractive than peer average of 20%."

For an analyst ratings summary and ratings history on Atlas Energy Solutions Inc click here. For more ratings news on Atlas Energy Solutions Inc click here.

Shares of Atlas Energy Solutions Inc closed at $21.43 yesterday.

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