In a report published Monday, Miller Tabak analyst Sonny Randhawa initiated coverage on U.S. Silica Holdings Inc (NYSE: SLCA) with a Buy rating and $82.00 price target.

In the report, Miller Tabak noted, “We are initiating coverage of SLCA with a Buy rating and a 12 month price target of $82. We believe E&P companies are just starting to understand the benefits that increased reservoir contact has on ultimate recovery and expect a step change in frac sand demand as companies move up the learning curve. We expect frac sand demand to reach 84MM tons by 2016. We believe SLCA is one of the best ways to play this growth due to its aggressive capacity expansion plans and industry leading logistics and transload network.”

U.S. Silica Holdings Inc closed on Friday at $63.44.

Latest Ratings for SLCA

View More Analyst Ratings for SLCA
View the Latest Analyst Ratings

See more from Benzinga

• UPDATE: Bank Of America Reiterates On U.S. Silica Holdings Inc On Guidance Surprise To The Upside

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.