UPDATE: Wunderlich Securities Downgrades Basic Energy Services to Sell, Lowers PT as Data Points and Valuation Go Their Separate Ways

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on Basic Energy Services BAS from Hold to Sell, and lowered the price target from $11.00 to $10.00. In the report, Wunderlich Securities noted, “Basic Energy Services (BAS) last week reported a weak 3Q13 as EPS of -$0.12 that was about in line with our -$0.13 estimate but below the Street's -$0.10 as revenues and EBITDA were slightly lower than expected. Additionally, the company reiterated its 4Q13 guidance (top-line down 6-7%) and explained that it continues to battle through a tough market in terms of pricing and utilization across most of its business lines. Despite these data points the stock rose over 6% on Friday. After moving our forecasts down, however, we feel more strongly than ever that the tough market, one in which we see little pick-up in the near or medium terms, could continue to weigh on Basic and as such have lowered our forecasts, price target, and rating on the name.” Basic Energy Services closed on Friday at $13.79.