Newpark Resources initiated with a Buy at B. Riley

B. Riley initiated coverage of Newpark Resources with a Buy rating and $10 price target. Newpark manufactures, rents, sells, and provides services for heavy-duty composite mats used for temporary work access platforms across power infrastructure, oil and gas, construction, and industrial end markets, the analyst tells investors in a research note. With the completed sale of its Fluids business, expected in mid-2024, the firm believes the shares will begin to reflect higher growth, improved margins, cash flow stability, and strong energy-related megatrends,” resulting in a re-rating much higher than the current price.”