U.S. Silica was gaining 1.5% to $27.12 Monday.
The bank set a price target of $33 to $35 for the company. Analyst Matthew D. Conlan said the company's stock has fallen to an attractive entry point.
"SLCA's recent earnings preannouncement and below-consensus 2014 guidance set expectations for SLCA's per-ton profits to remain fairly flat in 2014 and lowered the stock's valuation to a level we feel is an attractive (re)entry point," Conlan wrote. "In line with SLCA's most recent (seemingly conservative) guidance, we are lowering our 2013/2014 EPS estimates to $1.43/$1.97 from $1.56/$2.42, with a 2015 EPS estimate of $2.79."
Separately, TheStreet Ratings team rates U S SILICA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate U S SILICA HOLDINGS INC (SLCA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: