Vancouver, British Columbia--(Newsfile Corp. - August 14, 2013) - Investment firm Mackie Research has initiated coverage on Aveda Transportation and Energy Services (TSXV: AVE). Analyst Raveel Afzaal gives the company a speculative buy rating, and a 12 month target
price of $3.60, a premium of 47% to the $2.45 price the day the report was issued.
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Aveda provides transportation services, representing approximately 94% of its consolidated revenues as well as rental equipment services, for the oil and gas industry in Western Canada and the U.S., in and around the shale plays in the states of
Texas and Pennsylvania.
Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda’s rental operations include the
rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.
The company’s revenues from the U.S. grew from $15 million in 2010 to $47 million at the end of 2012, and are forecasted to reach approximately $57 million by the end of 2013.
In their report, Mackie Research stated that they expect revenues from the U.S. to offset the decline in total revenues arising from softness in activity levels in Western Canada, and that revenues from the U.S. market would grow to $63 million
by the end of 2014, representing approximately 70% of the consolidated revenues.
Analyst Raveel Afzaal stated, “Our discussions with industry participants indicate that oil and gas activity levels have started to rebound, which could lead to significant upside to our target price.”
The shares are currently trading at $2.40, below Mackie Research’s target price of $3.60 and with 10 million shares outstanding the company is capitalized at $24 million.
For more information, please visit the company’s website
www.avedaenergy.com or contact Bharat Mahajan CFO at 403-264-5769 or email
bharat.mahajan@avedaenergy.com.
For more information about Mackie Research or to obtain the report on Aveda, contact your nearest Mackie Research office. Their branches are listed on their website at
www.mackieresearch.com.
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