UPDATE: D.A. Davidson Initiates Coverage on Newpark Resources as Prospects Appear Compelling

In a report published Friday, D.A. Davidson & Co. analyst Tristan Richardson initiated coverage on Newpark Resources (NYSE: NR) with a Buy rating and $17.00 price target.

In the report, D.A. Davidson & Co. noted, “Technological advances in drilling methods have allowed access to significant reserves in North America previously inaccessible. A focus on oil and liquid-rich developments, the increased complexity of wells, and rig efficiency have all led to growth in demand for oilfield services, despite a flattish rig count environment. Newpark's differentiated fluids systems and mat products are well positioned to take advantage of these trends.”

Newpark Resources closed on Thursday at $12.61.