CARBO Ceramics (NYSE:CRR) Short-Term Upside Looks Weak

CARBO Ceramics Inc. (NYSE:CRR) was downgraded by Global Hunter on weak short-term upside, although they look sound in the long term.

Global said, "With increasing service intensity being met with an onslaught of pressure pumping equipment additions, likely increasing the completed well count through 2012, we like the prospects of full absorption of CRR's expanding ceramic and resin coating proppant capacity. Ending the quarter with $2/share in cash and zero debt, along with the prospects of operating cash flows exceeding capex requirements, we expect it to fund growth organically and increase its quarterly dividend 10% post-Q2. Thus the fundamental outlook is sound, but with our 2012 estimate, which is the basis for our $125 price target, which is unchanged. We are lowering our rating from Buy to Accumulate on less near-term upside."

Global Hunter downgraded CARBO Ceramics (CRR) from "Buy" to "Accumulate," while maintaining their price target on the company of $125. CRR closed Friday at $113.61, gaining $3.59, or 3.26 percent.