Dahlman Rose Upgrades Basic Energy to Buy, Raises 2012 EPS Estimates

In a note out today, Dahlman Rose upgraded Basic Energy Services

to buy from hold with a $25 price target, implying significant upside from where the shares currently trade. The research firm also raised its EPS estimates to $2.75 and $3.00 from $2.60 and $2.45 for 2012 and 2013, respectively. “There could be upside to our estimates: 1) if there is less margin erosion than expected in the Completion segment due to a backlog through mid-2012, our 2012 EPS could be $0.15 higher. 2) If Well Service margins reach 35%, ahead of our new estimate of 33%, this could add $0.10 to our 2012 EPS,” Dahlman Rose said in the note.