UPDATE: Wunderlich Securities Upgrades Basic Energy Services as Weather/Natural Gas Prospects Improves
In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler upgraded the rating on Basic Energy Services (NYSE: BAS) from Sell to Hold, and raised the price target from $19.00 to $27.00.
In the report, Wunderlich Securities noted, “Basic Energy Services (BAS) has seen a nice move high in both activity and stock valuations of late as the cycle seemingly is starting to turn in its favor. With the weather improving from issues in early 2014 and E & P budgets remaining robust, we feel that most E & Ps now are cramming 12 months of solid activity into 9-10 months and the increase in spending should benefit players like Basic. Basic's monthly update saw strong growth as the weather improved; and though pricing still is likely flat…well, at least it's just flat now.
"Given these improvements we are upgrading Basic from Sell to Hold and raising our price target from $19 to $27 to account for the better market conditions but, given the stock price appreciation so far this year, feel much of the improvement is priced in.”
Basic Energy Services closed on Monday at $27.48.
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