Wells Fargo Cuts U.S. Silica Holdings (SLCA) to Market Perform
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Price: $11.46 -7.13%
Rating Summary:
10 Buy, 15 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 3 | New: 43
Rating Summary:
10 Buy, 15 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 3 | New: 43
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Wells Fargo downgraded U.S. Silica Holdings (NYSE: SLCA) from Outperform to Market Perform with a price target of $33-$35 (from $26-$28). Analyst Matthew D. Conlan said he wasn't going to chase a "short squeeze."
"Despite our belief that SLCA has sustainable competitive cost and logistical advantages in the growing frac sand market, we think the stock is fairly valued at roughly 9x 2014E EBITDA," said Conlan.
"We believe the underlying reason for SLCA's huge short position is the expectation that Golden Gate Capital will again come to the market to sell down its position. Through two sales in the first half of 2013, GGC lowered its ownership from 80% to 35% of shares," he added.
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 $33.55 yesterday.
"Despite our belief that SLCA has sustainable competitive cost and logistical advantages in the growing frac sand market, we think the stock is fairly valued at roughly 9x 2014E EBITDA," said Conlan.
"We believe the underlying reason for SLCA's huge short position is the expectation that Golden Gate Capital will again come to the market to sell down its position. Through two sales in the first half of 2013, GGC lowered its ownership from 80% to 35% of shares," he added.
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 $33.55 yesterday.
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