UPDATE: Wunderlich Securities Initiates Coverage on Pioneer Energy Services Corp. with Hold Rating, $7 PT Awaiting Improved Market

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler initiated coverage on

with a Hold rating and $7.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Pioneer Energy Services Corp. (PES) with a Hold rating and $7 price target. Pioneer provides drilling and production services to E&P companies in the onshore and offshore United States and has exposure to Colombia. The company has grown on the drilling side through the construction of newbuild rigs that are specifically built for the domestic shale plays, while also expanding its suite of services on the production services side through multiple acquisitions. We are initiating coverage with a Hold as the cyclical market has been tough on Pioneer in recent years, which, coupled with the spending to grow its capacity, has boosted debt levels significantly; we believe an improved market for Pioneer is needed for it to be able to improve its financial position.” Pioneer Energy Services Corp. closed on Thursday at $6.61.