NEW YORK (TheStreet) -- Shares of Energy Recovery (ERII) - Get Report were jumping 7.52% to $16.38 on heavy trading volume late Tuesday afternoon after the stock was added to the "conviction list" at Iberia Capital, the Fly reports.
The firm sees upcoming near-term catalysts that can boost shares higher, such as the expected results of a five-stage test well hosted at Schlumberger's (SLB) test facility. A 20-stage well in the field will probably follow in a few months, according to Iberia.
The successful completion of these milestones would each result in a $25 million payment from Schlumberger to Energy Recovery as part of its $125 million exclusivity agreement, the Fly noted.
Imperial believes that if each test is successful it would be a huge vote of confidence for the use of the company's pressure exchanger in the oilfield.
Additionally, Evercore ISI started coverage of the stock with a "buy" rating and $23 price target today.
The San Leandro, CA-based company manufactures energy recovery devices for the oil and gas, chemical and water industries.
More than 1.22 million of the company's shares changed hands so far today, above its average 30-day volume of 616,183 shares.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.
But the team also finds that the company's return on equity has been disappointing.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ERII