August 3rd update from Stifel
Solaris Oilfield Infrastructure, Inc. (SOI, $7.26, Buy; Target $10.00)
Cash Generation and Debt-Free Balance Sheet Remain Key to the SOI Story; Maintain Buy - Stephen Gengaro
SOI delivered strong 2Q20 FCF despite an 80% sequential revenue drop and about breakeven EBITDA due to strong working capital liquidation. Although activity likely rebounds 35-45% in 3Q, a lack of overhead absorption and modest average price declines will likely yield only minimal near-term EBITDA improvement. Looking ahead, minimal capital spending requirements should enable SOI to generate strong FCF to bolster its debt-free balance sheet over the next few years. We maintain our Buy rating with a revised target price of $10 from $11 based on our DCF analysis.
In the last 3 months, 5 ranked analysts set 12-month price targets for SOI. The average price target among the analysts is $9.20.
Solaris Oilfield Infrastructure (SOI) Update - Aug 3
Solaris Oilfield Infrastructure (SOI) Update - Aug 3
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group