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Analyst Actions: Barclays Sees ProPetro As "Best of Breed", Boosts PT to $26 from $20, Keeps at Overweight - Stock Up 2%

Barclays has boosted its price target on ProPetro Holding Corp ( PUMP ) to $26 from $20 while reaffirming its overweight rating, expecting it to outperform its peers amid a challenging environment.

"This quarter proved to be a true litmus test to determine which pressure pumper was most differentiated," Barclays said in a note. "In a very challenging quarter for the pressure pumping industry, ProPetro impressively distanced itself from the pack, indeed proving it is best of breed."

Unlike its pure play peers Keane ( FRAC ), FTS ( FTSI ), and Liberty oilfield ( LBRT ), ProPetro reported an increase in EBITDA/fleet, even as the U.S. completions market was collapsing around them, the analyst said, adding that doubts of CEO Dale Redman's unique, relationship-focused strategy are fading quickly.

"Mr. Redman continues to prove the way he works with his customers is just different, which has become an intangible competitive moat helping to defend against widespread spending cuts from producers."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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