In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on Emerge Energy Services LP (NYSE: EMES), but lowered the price target from $130.00 to $100.00.

In the report, Wunderlich Securities noted, “Despite the resurgence in volatility in Emerge's (EMES) stock we would advocate patience as in our view the downfall is purely driven by negative sentiments and not much by fundamentals. Given the dramatic pull back in stock prices we believe the stock is already discounting a significant reduction in drilling activities and softening of the frac sand demand. In order to capture the increased uncertainty amid falling oil prices we are tweaking our estimates and lowering our price target from $130 to $100. However, we believe the company has high quality assets in the majority of the locations where the break even prices required for drilling are well below $60/bbl. At current prices, our $100 price target implies over 87% total return making the valuation compelling.”

Emerge Energy Services LP closed on Tuesday at $56.01.

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