ProFrac to benefit from strong frac profitability, says BofA
10/06/2022 17:45
** Brokerage BofA Securities initiates coverage of U.S.
oilfield services company ProFrac Holding Corp PFHC.O with
"buy" rating and TP of $26
** Shares of the company were up as much as 1.55% at $22.99
** Brokerage says frac profitability is set to rise
materially through the year and into 2023 as fast improving
leading edge pricing flows through to substantially all of the
active fleets
** Says there are about 260 active frac fleets today and
expects the number to go up by at least 35-40 fleets, likely
over 300, by 2023
** Says rising frac intensity, aging equipment coupled with
a more consolidated supply base, long lead time for newbuilds
have pushed marketed utilization to above 90% and expects it to
remain at that level over the next 9-12 months
** PFHC, the third largest Pressure Pumper in North America,
with in-house manufacturing and consumables, is well positioned
to benefit from this- Brokerage
** Co's shares gained 5% on Tuesday after brokerages JP
Morgan Chase and Piper Sandler started coverage with "buy"
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(Reporting by Rithika Krishna in Bengaluru)
((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))