PFHC - ProFrac wins another bull at BofA as preferred fracking contractor

ProFrac Holdings (NASDAQ:PFHC) +2.4% in Friday's trading after winning a new Buy recommendation with a $26 price target at Bank of America, saying the company is attractively positioned via its "vertically integrated model and low capex/opex intensity." BofA's says the Buy rating reflects its view that "frac profitability is set to rise materially through year-end and into 2023 as fast improving leading edge pricing flows through to substantially all of the active fleets by year-end." ProFrac's (PFHC) post-IPO net debt to TTM pro-forma EBITDA of 0.9X could drop to 0.3x by year-end, which BofA says allows the company to "'acquire' companies at low valuations, 'retire' and cannibalize older equipment for spare parts thus reducing opex/capex, and 'replace' it with new generation dual-fuel/electric fleets" with surplus free cash flow. BofA's recommendation adds to Wall Street's unanimously bullish sentiment following last month's IPO.

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ProFrac wins another bull at BofA as preferred fracking contractor