UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Basic Energy Services
In a report published Friday, Deutsche Bank reiterated its Buy rating on Basic Energy Services (NYSE: BAS), but slightly lowered its price target from $18.00 to $17.00.
Deutsche Bank noted, “While the rate of deterioration is faster than expected, the slowing markets into year-end should not be a surprise. This is all part of the bottoming process and we have expected a weak Q4 will be followed by a slow ramp up in Q1 as operator budgets reset. We reiterate our BUY rating as we look past the pricing pressures and seasonality in the near-term and continue to believe that even if E&P capex spending stays flat y/y, this would still imply an increase in oil directed activity on a leading edge basis. BAS remains well positioned to benefit from an uptick in activity next year from this lower runrate.”
Basic Energy Services closed on Thursday at $10.33.
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