TUSK - Mammoth Energy launched with Buy at EF Hutton on pressure pumping strength

2023-04-20 15:55:51 ET

Mammoth Energy Services ( NASDAQ: TUSK ) is initiated with a Buy rating and $7 price target at EF Hutton, saying the company's multi-segment energy services should benefit from ongoing growth opportunities in North America.

EF Hutton analyst Ignacio Bernaldez said oilfield services should see ongoing revenue growth, but margins likely will compress modestly in 2023, as Mammoth ( TUSK ) is expected to bring on an additional active frac fleet in this year's H2.

Ignacio said he remains particularly bullish on Mammoth's ( TUSK ) onshore pressure pumping services as supply tightens and operators commit to disciplined spending.

Overall, the analyst thinks Mammoth's ( TUSK ) revenue is well positioned to grow by 36% Y/Y to $492M in 2023 and 28% Y/Y in 2024.

Mammoth Energy ( TUSK ) expects to put two more pressure pumping fleets into operation this year, which could allow it to generate ~$85M in adjusted EBITDA in 2023, Elephant Analytics writes in an analysis published on Seeking Alpha .

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