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Newpark Resources (NYSE:NR) +0.5% in Tuesday's trading as B Riley initiates coverage with a Buy rating and $10 price target, believing the stock will begin to reflect higher growth, improved margins and cash flow stability.
Newpark (NR) manufactures, rents, sells and provides services for heavy-duty composite mats used for temporary work access platforms across power infrastructure, oil and gas, construction, and industrial end markets, BofA analyst Alex Rygiel says, also noting the company's environmental focus, as its composite mats are 100% recyclable and weigh significantly less than wood mats, cutting back on freight transportation and thus carbon emissions.
With the completed sale of the Fluids business expected in mid-2024, Rygiel thinks Newpark (NR) shares "will begin to reflect higher growth, improved margins, cash flow stability, and strong energy-related megatrends, resulting in a re-rating much higher than the current price."