UPDATE: Wunderlich Securities Upgrades Key Energy Services on Multiple Positive Factors
In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler upgraded the rating on Key Energy Services (NYSE: KEG) from Sell to Hold, and raised the price target from $6.00 to $9.00.
In the report, Wunderlich Securities noted, “Key Energy Services (KEG) has been working with major headwinds but some of these seem to be easing and the macro picture is improving. Key has remained focused on right-sizing businesses and focusing CapEx on projects where demand is sufficient while repaying debt. Now, with the severe weather of early 2014 likely behind them, robust domestic capital expenditure plans from the E&Ps expected to kick in, and international markets (specifically Mexico) no longer seeing declines, Key is in a position to see growth in the top and bottom lines.
"As such, we are upgrading Key from Sell to Hold and raising our target from $6 to $9 to reflect these improved macro trends; however, with the stock moving aggressively higher we feel much of the recovery (present and future) is priced into the stock.”
Key Energy Services closed on Monday at $9.80.
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