UPDATE: Wunderlich Securities Upgrades Pioneer Energy Services Corp. to Hold, Reiterates $7 PT as Valuation Properly Adjusts, Market View is Maintained

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler upgraded the rating on Pioneer Energy Services Corp. (NYSE: PES) from Sell to Hold, and reiterated the $7.00 price target.In the report, Wunderlich Securities noted, “We are upgrading shares of Pioneer Energy Services (PES) from Sell to Hold as the shares have declined to a level we feel properly prices the equity in the current environment. Since late October, the stock has fallen from $8.74 to $7.09, or about 20%, and now we feel that the company is being properly valued given the current environment in the onshore OFS space. Pioneer has seen solid utilization rates across its business lines but pricing remains flattish and with our view of a relatively flat US rig count in 2014, especially early in the year given weather constraints, we feel that the numbers we put out in October are still relevant. With flat EPS and revenue and a focus on debt reduction, we move to Hold from Sell as the equity value hits our target $7 target.”Pioneer Energy Services Corp. closed on Friday at $7.09.