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On Tuesday, Citi updated its analysis of Select Energy Services (NYSE:), adjusting the shares price target to $9.00, up from the previous target of $8.25. The firm has kept its Neutral rating.
The adjustment follows Citi’s preliminary forecasts for Select Energy Services’ first quarter and full-year 2024 adjusted EBITDA, which are estimated to be $52 million and approximately $253 million, respectively. These projections fall below the consensus estimates of $59 million for the first quarter and $285 million for the year.
Citi’s forecasts do not include stock compensation in their EBITDA calculations, a factor that, if accounted for, would bring their estimates closer to the consensus. The firm’s rationale behind the Neutral rating and the revised price target is based on rolling their valuation forward to 2025 estimates and applying a 3.0x multiple on their 2025 estimated EBITDA.
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