Atlas Energy initiated with a Buy at Stifel

Stifel initiated coverage of Atlas Energy (AESI) with a Buy rating and $15 price target The firm says its positive view is based on the company’s “high-quality, low cost” mines, low cost delivery system, including its proprietary Dune Express, and growth opportunities provided by Atlas Energy’s recently acquired power generation business Moser. While the near-term outlook for frac sand pricing remain challenged, the Dune Express conveyor delivery system is a “highly differentiated offering” in an otherwise commoditized frac sand business, and should help support margin despite pricing headwinds, the analyst tells investors in a research note.