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