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Investing.com - Goldman Sachs downgraded Atlas Energy Solutions Inc (NYSE:AESI) from Neutral to Sell on Friday, while reducing its price target to $8.00 from $12.00. The stock is currently trading at $8.57, down nearly 60% year-to-date and significantly below its 52-week high of $26.86, according to InvestingPro data.
The downgrade reflects revised expectations for Atlas Energy’s sand volumes in 2025, which Goldman Sachs now estimates at approximately 21.2 million tons, down from initial expectations of over 22 million tons and below previous company guidance. This aligns with InvestingPro data showing analysts have revised earnings downward, with EPS forecast at -$0.41 for fiscal year 2025.
Goldman Sachs attributes the volume reduction primarily to calculation methodology changes based on customer volume commitments, noting that even with shortfall payments, lower customer activity levels result in reduced realized volumes for Atlas Energy.
The investment bank anticipates continued challenges for Atlas Energy’s sand consumption volumes in 2026, particularly in a difficult market environment for oil-focused activity.
While Goldman Sachs expects Atlas Energy to gain market share through its ability to bid on new large volume contracts, the firm maintains a conservative outlook on actual consumption estimates given the current macroeconomic environment.
In other recent news, Atlas Energy Solutions reported its third-quarter 2025 financial results, which revealed a net loss with earnings per share of -$0.19, falling significantly short of the anticipated $1.07. Despite this earnings miss, the company’s revenue exceeded expectations, coming in at $259.6 million compared to the projected $237.1 million. Following these results, Atlas Energy Solutions also provided a cautious outlook for the fourth quarter and announced the suspension of its dividend payments. In response to these developments, Stifel maintained its Buy rating on Atlas Energy Solutions, keeping a price target of $13.00. Meanwhile, Piper Sandler adjusted its price target for the company, lowering it from $12.00 to $10.00, while maintaining a Neutral rating. This decision was influenced by Atlas Energy’s recent move into the larger megawatt market with a substantial order of 240MW. This order involves natural gas reciprocating engines, marking a shift from the smaller generators acquired through the Moser acquisition. These recent developments reflect significant shifts within Atlas Energy Solutions, impacting investor sentiment and analyst evaluations.
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