As previously reported, Iberia upgraded Energy Recovery to Conviction Buy from Buy. Analyst Trey Stolz sees upcoming near-term catalysts that can drive shares higher including expected results on a 5-stage test well hosted at Schlumberger's test facility, with a 20-stage well in the field likely to follow within a few months. The successful completion of these milestones would each result in a $25M payment from Schlumberger to the company as part of the $125M exclusivity agreement. Stolz also believes each test, assuming success, would be an enormous vote of confidence for the use of Energy Recovery's Pressure Exchanger in the oilfield, where onshore frac is, in his view, only the beginning of a potentially much larger market.