ProPetro downgraded at Raymond James on valuation

|About: ProPetro Holding Corp. (PUMP)|By:, SA News Editor

Raymond James downgraded ProPetro (PUMP +0.6%) is downgraded to Outperform from Strong Buy with a $25 price target at Raymond James, which says shares are now pricing in a substantial relative premium.

PUMP's strong Q4 results reflected the company's consistent frac fleet utilization and superior performance to peers, and the company likely will generate industry-leading profitability in 2019, but this is already priced into its stock, says Ray Jay analyst Praveen Narra.

PUMP achieved Q4 annualized EBITDA per hydraulic horsepower of $425 vs. the peer group’s annualized $220/hhp, but Narra says the discrepancy will contract, with PUMP's earnings outperforming the peer group by $130/hhp in 2019.

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