ProPetro Holding price target raised to $10 from $8 at Citi

Citi raised the firm’s price target on ProPetro Holding to $10 from $8 and keeps a Neutral rating on the shares. The investment thesis on the domestic frac companies “appears to be at a crossroads,” the analyst tells investors in a research note. On the one hand, EBITDA expectations still appear too high for Liberty Energy (LBRT) and ProPetro (PUMP), but on the other hand, the opportunity to grow new distributed power segments offers a route to grow EBITDA with the increment being multiple accretive, the analyst tells investors in a research note. Citi says providing power even for oil production could garner twice the multiple assigned to core frac operations. However, following the recent run, there could be a pause in the stocks as investors digest earnings and await details regarding the opportunity in power, adds the firm.