UPDATE: Wunderlich Securities Initiates Basic Energy Services at Hold on Margin Compression

Wunderlich Securities initiated its coverage on Basic Energy Services

with a Hold rating and a price target of $14. Wunderlich Securities noted, "Basic has seen revenues decline in the past few quarters due to pricing pressures, predominantly on its pressure pumping services, and higher costs of labor due to a shortage of experienced people. These factors have reduced margins and likely can continue for the next few quarters due to the high level of new and relocated equipment coming into Basic's core regions. Until we are able to see a stabilization in pricing, we are cautious on the name at current levels." Basic Energy Services closed at $12.83 on Wednesday.