The Globe and Mail reports in its Thursday, March 14, edition that Raymond James analyst Michael Barth has reaffirmed his "outperform" recommendation for Step Energy Services. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Barth gave his share target a 75-cent trim to $4.50. On Wednesday, Step Energy's shares plummeted by almost 13 per cent, following the announcement of its adjusted earnings before interest, taxes, depreciation and amortization figure for the quarter. The company reported $18.4-million, which was significantly lower than the expected $30-million. Moreover, the revenues dropped by 23 per cent from the previous quarter, with adjusted EBITDA margins of 9 per cent hitting their lowest since 2020. Mr. Barth says in a note, "While we wouldn't extrapolate 4Q23 margins into the future, this does highlight the extreme operating leverage that exists at the scale Step Energy operate." Nevertheless, Mr. Barth reaffirmed his bullish rating, with his reduced price target still implying a 47-per-cent return over the next 12 months. Mr. Barth adds, "Our target does move lower to reflect near-term concerns about D&C [drilling and completions] activity in Canada."