ProPetro Holding initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of ProPetro Holding (PUMP) with a Neutral rating and $15 price target. The firm sees the company as a beneficiary of the Behind-the-Meter power solutions due to exposure to diversified customers, strategic partnership with Caterpillar (CAT), and its ability to fund power business growth with cash from its high cash generation completions business, the analyst tells investors in a research note. With ProPetro’s history of strong balance sheet management, Goldman adds it has the confidence in the company’s ability to raise further financing for capacity increases, though the firm also notes that its view of announced capacity of about 1GW by 2030-end is priced into current stock levels.