Boston, MA 04/07/2014 (wallstreetpr) – Emerge Energy Services LP (NYSE:EMES) is a relatively young partnership limited company, having gone public last May. But despite being at an early stage, the company has managed to push forward its stock in the past several months and on top of that it maintains high dividend payout.
The company is benefiting from the widely bullish business atmosphere in the energy sector and the fact that its production capacity is in progressive growth. Moreover, the management can be seeing doing all that is possible to contain costs and expenses, not to forget efforts to gain market share. All these are helping the company to realize revenue growth and earnings improvement. Perhaps this explains why analysts have started getting more optimistic on the stock.
Although the latest unemployment numbers resulted in the fallout of many stocks, Emerge Energy Services LP (NYSE:EMES) was among the few stocks which defied market trend to register significant gain Friday. Shares rose to a new 52-week high at $72.50 and closed with a gain of almost 12 percent.
The gain in the stock came on the back of a bullish note on the stock from analysts at Robert W. Baird. The analysts upgraded the stock to outperform from neutral. As for the stock price, the analysts lifted their price target to $85 from $50. The new price target suggests a significant upside potential from the prevailing price which is in the range of $72. The positive change in analyst view on the stock seems to be influenced by the understanding that the management is executing well to put the company on a long-term profitability path.
Emerge Energy Services LP (NYSE:EMES) pays significantly high dividend than many of its competitors. High dividend payout means that a lot of money is getting its way back to shareholders, which is good news for income investors.
Emerge Energy Services LP (NYSE:EMES) has a new facility which is expected to commence operations over the coming year. The management stated that the new facility will be able to increase production capacity by almost 70 percent and generate revenue of more than $110 million.