Dahlman Rose Raises Price Target on CARBO Ceramics (CRR), Raises GM Estimates and Sees More Upside

Dahlman Rose is reiterating its Buy rating on shares of CARBO Ceramics Inc. (NYSE: CRR) and is raising its price target from $176 to $191.

The firm new price target reflects its new earnings and gross margin outlook. Dahlman has increased its gross margin estimates for 2012 and 2013 by 140 bps following strong Q3 results. They note upside potential to their new estimates on "a higher percentage of lightweights from Toomsboro Line 4’s production, an increasingly profitable contribution from the non-proppant businesses, lower natural gas input costs, and potentially stronger-than-expected RCS margins.

Dahlman Rose is increasing its Q4 and FY11 EPS estimates from $1.51 and $5.56 to $1.75 and $5.98. For 2012 and 2013, the firm is raising its EPS estimates from 7.35 and $9.80 to $7.60 and $10.05.

The shift to multi-stage fractures should drive the growth for and demand for proppant.

For more ratings news on CARBO Ceramics Inc. click here and for the rating history of CARBO Ceramics Inc. click here.

Shares of CARBO Ceramics Inc. closed at $144.18 yesterday.

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