“PUMP” & Dump: Fracker Underwriters Say Buy “ProPetro” For Yuuuge Upside

Regular readers will recall that we’re not exactly optimistic about the prospects for a sustained recovery in crude prices. That means we’re by definition skeptical about the surge in equity offerings from US operators we saw during January.

Specifically, energy firms raised $6.64 billion in 13 equity offerings during the first month of the year, and that total included $508.4 million raised on January 20 by Keane Group, a Houston-based provider of fracking services, in what was the first IPO of the year in the US. That’s turned out great for investors…

FRAC

A couple of months after “FRAC” we got “PUMP” another fracker IPO from “ProPetro” which describes itself as follows:

We are a growth-oriented, Midland, Texas-based oilfield services company providing hydraulic fracturing and other complementary services to leading upstream oil and gas companies engaged in the exploration and production, or E&P, of North American unconventional oil and natural gas resources.

We profiled it here.

Well on Tuesday it was time for Wall Street to “pump” PUMP and if you’re in the camp that believes throwing good money after bad is a “good” idea, this is your day goddammit.

PUMP

PUMP2

  • ProPetro Holding (PUMP) new buy at Goldman, PT $25
  • ProPetro Holding (PUMP) new outperform at Evercore ISI, PT $19
  • ProPetro Holding (PUMP) new outperform at RBC, PT $21
  • ProPetro Holding (PUMP) new overweight at Barclays, PT $18
  • ProPetro Holding (PUMP) new overweight at JPMorgan, PT $20
  • ProPetro Holding (PUMP) new overweight at Piper Jaffray, PT $18

*********

Oh, and just ignore the list of underwriters on the IPO, it’s purely coincidental that it matches the bullet points above ….

GSPUMP

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