Profire Energy (PFIE) received a slight boost to its price target Sunday from Chardan Capital Markets, which cited strong results from the oilfield-technology company in the first half of the year as well as expectations for “robust” results in the second half.
The firm’s new price target on Profire’s stock is $2.35 each, up from $2.15. The boost moves the price target further above the stock’s Friday closing price of $1.82. Chardan kept its investment rating on the stock at buy.
In a note to clients, Chardan said with West Texas Intermediate oil prices “holding steady between $45 and $50 per barrel and the North American rig count averaging about 1150 over the past three months conditions are present for Profire to continue to post strong results although [quarter-over-quarter] growth is not likely to be as strong in the [second half] of this year as it was in the first.”
Noting West Texas Intermediate oil has averaged about $49 per barrel over the past year while the North American rig count has jumped about 63%, RBC said “this has created a favorable environment for Profire and in the first half of this year revenue doubled over the same period a year ago.” It added: “We expect revenue growth in the second half of 50%, but this should moderate in 2018 unless there is a significant change in WTI and the rig count.”
Chardan said it expects the stock’s valuation “can advance rapidly if the company continues to exceed revenue and [earnings-per-share] estimates and if oil [prices] remain relatively stable over the coming quarters.”