Mammoth Energy Services' Fundamentals Are Undervalued, Analyst Says; Sees Sharp Upside

EF Hutton analyst Ignacio Bernaldez initiated coverage on Mammoth Energy Services, Inc. TUSK with a Buy rating and a $7 price target.
The analyst expects the company's multi-segment energy services to benefit from ongoing growth opportunities in North America.
The analyst notes that oilfield services should see ongoing revenue growth, but margins will likely compress modestly in 2023, as the company is expected to bring on an additional active frac fleet in the year's second half.
Overall, the company's revenue is well positioned to grow by 36% year over year to $492 million in 2023 and 28% year over year in 2024.
Ignacio remains particularly bullish on the company's onshore pressure pumping services as supply tightens and operators commit to disciplined spending.
Going ahead, for infrastructure services, gross margins should see modest expansion to 20% in 2023 and 22% in 2024 as the company maintains operational efficiencies.
The analyst forecasts EBITDA margins to expand from 1% in 2022 to 5% in 2023 and 9% in 2024 for infrastructure services.
Price Action: TUSK shares are trading higher by 0.05% at $4.33 on the last check Thursday.

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