ProPetro Stock Drops After Analyst Coverage
On September 30, ProPetro Holding (NYSE: PUMP) saw its stock fall by 4.5% after Scotiabank analyst Ian Rapp initiated coverage with a 'sector perform' rating and set a $12 price target for the oilfield services provider. The price target implies potential upside of about 29%, but it was not enough to attract bullish investors, leading to selling pressure. The stock closed at $8.88 after trading between $8.85 and $9.24 during the session. ProPetro's market cap is currently around $1.1 billion with a gross margin of 8.30%. The company’s shares are trading at 6.4 times operating cash flow, which is higher than its five-year average multiple of 3.5. Analysts often have shorter investment horizons when setting price targets, and investors were advised to consider these opinions as just one data point among many. With no recent financial results reported by ProPetro, the stock appears less attractive for potential buyers at this time.
Tickers: $PUMP
Topics: oilfield services ProPetro Scotiabank analyst coverage