KLR Group Starts CARBO Ceramics Inc. (CRR) at Hold (Earlier)

KLR Group initiates coverage on CARBO Ceramics Inc. (NYSE: CRR) with a Hold rating and a price target of $15.25.

Analyst Darren Gacicia commented, "We are initiating CRR with a Hold rating and $15.25 price target. A potential recovery for the ceramic proppant market hinges on both a recovery of North American activity and a shift away from sand in search of higher volume recoveries per well. The migration back to ceramics most likely comes at a lag to activity recovery and requires a renewed focus on higher ultimate recovery rates, with less stringent focus on well costs and initial production rates. Given a focus on higher and optimally placed sand proppant volumes, visibility on a change in well designs remains opaque. With a high fixed overhead and debt covenants in question, we do not see an favorable risk/reward. Concerns vetted, we would be cautious to be short CRR, as lower share float and high short interest creates amplified volatility on swings in the shares."

For an analyst ratings summary and ratings history on CARBO Ceramics Inc. click here. For more ratings news on CARBO Ceramics Inc. click here.

Shares of CARBO Ceramics Inc. closed at $16.32 yesterday.

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