Atlas Energy Solutions (AESI) has received a new Buy rating, initiated by Piper Sandler analyst, Derek Podhaizer.
Derek Podhaizer has given his Buy rating due to a combination of factors that highlight the potential growth and strategic positioning of Atlas Energy Solutions (AESI). Despite being a divisive stock with mixed opinions, Podhaizer sees significant growth opportunities for AESI, particularly with the ramp-up of the Dune Express, a 42-mile conveyor belt proppant delivery system that promises to enhance efficiencies and safety in the oilfield.
Moreover, the company is expected to benefit from its expansion into Power Services through the Moser acquisition, which will increase its capacity and provide a structural cost advantage. The strategic use of autonomous trucking and multi-trailer systems is anticipated to boost service margins, while new electric dredge deliveries are set to optimize production costs. These factors, combined with a favorable valuation using target EV/EBITDA multiples, support the Overweight rating and a price target of $22.
In another report released on February 25, RBC Capital also maintained a Buy rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AESI in relation to earlier this year.
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