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On Wednesday, Benchmark analyst Kurt Hallead adjusted the price target for Atlas (NYSE:ATCO) Energy Solutions Inc (NYSE:AESI) to $25.00, down from the previous $25.00, while keeping a Buy rating on the stock. The target sits within the broader analyst range of $22-29, suggesting potential upside from the current price of $19.41. According to InvestingPro data, the stock has faced recent headwinds, declining 10.13% in the past week. Hallead’s reassessment follows a revision of the company’s earnings projections, with a slight increase for 2025 and a decrease for 2026.
Hallead stated, "We have increased our 2025 EBITDA by 5% and reduced 2026 by 4%." This update reflects the company’s recent financial guidance, which aligns with the consensus for 2025. Atlas Energy Solutions , active in the Frac Sand Market, has reportedly secured approximately 80% of its proppant capacity under contract for 2025 at an average price of $22 per ton. The company’s current EBITDA stands at $247.2M, with impressive revenue growth of 72% over the last twelve months. For deeper insights into Atlas Energy’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.
The analyst anticipates a positive pricing trend for Atlas Energy Solutions, projecting prices to move back toward the mid $20s per ton as 2026 approaches. This expectation is based on the likely exit of higher-cost competitors from the market, which could benefit Atlas Energy Solutions by reducing competition and potentially improving market conditions for their products.
Atlas Energy Solutions’ current position in the market has been bolstered by its ability to secure a significant portion of its capacity under contract, providing a degree of stability for its 2025 revenue. The company’s foresight in navigating the Frac Sand Market’s cycle lows seems to have positioned it for a rebound as industry dynamics shift in the coming year.
In other recent news, Atlas Energy Solutions Inc. reported its financial results for the fourth quarter of 2024, falling short of analysts’ expectations. The company’s earnings per share (EPS) was $0.13, missing the anticipated $0.17, while revenue reached $271.3 million, slightly below the projected $273 million. Despite these results, Atlas Energy Solutions completed strategic initiatives such as launching a driverless delivery operation and acquiring Moser Energy Systems, marking its entry into the distributed power generation market. The company forecasts significant growth in 2025, with a target of over $400 million in Adjusted EBITDA.
In related developments, Atlas Energy Solutions announced a 4% increase in its quarterly dividend to $0.25 per share. Analysts from RBC Capital Markets and Johnson Rice noted the company’s ongoing efforts in expanding its autonomous trucking program and power generation capabilities. Additionally, the firm has been focused on optimizing its logistics operations, with plans to increase its proppant sales volumes to over 25 million tons in 2025. The company’s strategic moves aim to bolster its competitive position in the Permian Basin, despite challenges such as potential fluctuations in sand prices and economic uncertainties affecting demand in the energy sector.
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