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Nuverra Environmental Is a Buy at these Levels- Roth Capital (NES)

Zemanta Related Posts ThumbnailAccording to Roth Capital, Nuverra Environmental (NYSE: NEV) is a buy at these levels. The stock is down more than 36 percent largely because of a Seeking Alpha titled, “Nuverra Environmental: A Sinking Ship With Default Risk” published on Seeking Alpha Pro and later released to the public. In it, contributor MBAvalueinvestor lays out the reasons he believes that the stock will continue its downward trajectory. Among his reasons:

  1. The company hasn’t generated any operating profits.
  2. Claims to be an environmental service company but is actually an oilfield service company.
  3. The founder of the company is distancing himself from it.
  4. It’s overvalued.

Read our coverage of that article here.

But Roth Capital disagrees. It says that the Seeking Alpha reported was “misguided.” It expects the company’s EBITDA to increase largely due to is Bakken Shale assets. The company reiterates its “Buy” rating and $3.50 price target.

[stock-tools exchange="NYSE" symbol="NES" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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