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Fairmount Santrol: Wall Street’s Forecasts after Its Earnings

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Analysts’ forecasts

In this part, we’ll discuss Wall Street analysts’ forecasts for Fairmount Santrol Holdings (FMSA) following its 2Q17 earnings release.

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Analysts’ rating for Fairmount Santrol Holdings

On August 3, 2017, after Fairmount Santrol’s 2Q17 earnings were released, ~63% of the analysts tracking the company rated it as a “buy” or some equivalent, ~31% rated it as a “hold,” and ~6% rated it as a “sell” or some equivalent. Fairmount Santrol Holdings accounts for 2.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has fallen 12% in the past year—compared to a 62% fall in Fairmount Santrol Holdings’ stock price.

In comparison, ~67% of the analysts tracking Nabors Industries (NBR) rated it as a “buy” or some equivalent, while ~33% rated it as a “hold.” To learn more, read Nabors Industries’ 2Q17 Earnings Missed Estimates.

Rating changes

On May 3–August 3, 2017, the percentage of analysts recommending a “buy” or some equivalent for Fairmount Santrol Holdings fell from 87% to 63%. Analysts’ “hold” recommendations increased for the company during the same period. A year ago, ~67% of the sell-side analysts recommended a “buy” for Fairmount Santrol Holdings.

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Target prices

Wall Street analysts’ mean target price for August 3, 2017, was ~$6.7 for Fairmount Santrol Holdings. Currently, it’s trading at 2.65, which implies ~152% upside at its current consensus mean price. Analysts’ average target price for Fairmount Santrol Holdings was $9.3 last month.

Peers’ target prices

The mean target price, surveyed among the sell-side analysts, for CARBO Ceramics (CRR) was $8.8 on August 3. Currently, CARBO Ceramics is trading at ~$6.9, which implies 27% upside at its average target price. The mean target price, surveyed among the sell-side analysts, for McDermott International (MDR) was $8.5 on August 3. Currently, McDermott International is trading at ~$6.6, which implies 28% upside at its average target price.

Learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.

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