Key Energy Services, Inc. (KEG) Upgraded To Buy

Analysts Andre Coleman and David Deckelbaum at UBS (NYSE: UBS) have upgraded Key Energy Services, Inc. (NYSE: KEG) from a Neutral to a Buy rating. The price target for the company has been raised from $9.50 to $12.50.

The company is expecting a 20%-30% growth in revenue due to additions made in Russia, and broad-based improvements. According to analysts, the company has positioned itself well through strategic spending to benefit from high-quality well servicing activity.

Analyst expect the combination of early 2010 E&P well spending, a potential short term rally in gas activity, and resulting improved utilization to favorably affect Key Energy Services, Inc.’s margins.