Market Overview

UPDATE: Wunderlich Securities Downgrades Key Energy Services on Expectations of Weak US and International Markets

Share:
Related KEG
Imperial Capital Reiterates In-Line, Raises Price Target On Key Energy Services On Signs Of Operational Improvement
Mid-Day Market Update: Interxion Surges On Merger Agreement With TelecityGroup; Marketo Shares Slide

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on Key Energy Services (NYSE: KEG) from Hold to Sell, but reiterated the $6.00 price target.

In the report, Wunderlich Securities noted, “On the heels of recent results from OFS companies and our bearish stance on certain sectors within the space, and with the run of Key Energy Services' (KEG) stock, we are downgrading our rating on KEG from Hold to Sell and maintaining a $6 price target. We believe the oversupplied domestic market for many of Key's business lines, further exacerbated by seasonality issues into 4Q13 and 1Q14, should harm pricing and utilization over the next six months while overall in 2014 we expect the E&Ps to remain content growing activity through increased efficiencies rather than adding to the rig count. Further, the international market remains difficult given the issues in Mexico and early-stage nature of other areas. These headwinds and premium valuation cause us to downgrade from Hold to Sell.”

Key Energy Services closed on Monday at $7.44.

Latest Ratings for KEG

DateFirmActionFromTo
Dec 2014Global HunterDowngradesNeutralReduce
Dec 2014RBC CapitalUpgradesSector PerformOutperform
Dec 2014Goldman SachsMaintainsNeutral

View More Analyst Ratings for KEG
View the Latest Analyst Ratings

Posted-In: Jason A. Wangler Wunderlich SecuritiesAnalyst Color Downgrades Analyst Ratings

 

Related Articles (KEG)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content