Imperial Capital Lowers Key Energy Services' Price Target, Maintains In-Line Rating

Scott Levine of Imperial Capital lowered his price target of

on Wednesday to $2.50 from a previous $4 while maintaining an In-line rating. “We believe Key Energy Services is well positioned to benefit from increased U.S. onshore E&P activity, given its broad service portfolio and geographic footprint,” Levine wrote in a note. The analyst adds that an upturn in U.S. production services may prove to be slow to materialize and a recovery in overseas earnings could take time to develop, although further downside in the International segment does appear to be limited. Levine notes that a lowered price target accurately reflects a more cautious industry outlook for industry activity over the coming years and the recent “significant” drop in crude oil prices.