Atlas Energy downgraded to Neutral at BofA on Permian sand pricing pressure

As previously reported, BofA downgraded Atlas Energy (AESI) to Neutral from Buy with an unchanged price target of $22.50. The firm forecasts Permian sand demand staying flat at about 70 MTPA in 2025/26, which doesn’t allow for a pricing recovery in the firm’s view. It now models proppant tons sold about 9% below consensus in both years and cut its 2025 and 2026 adjusted EBITDA estimates to $360M and $425M, respectively, the analyst tells investors.