UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Basic Energy Services

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Basic Energy Services BAS, but lowered its price target from $17.00 to $14.00. Deutsche Bank noted, “Headwinds of lowering activity levels and pricing pressures remain. It should come as no surprise that BAS continues to face the same headwinds of lower US activity levels and pricing pressures impacting their businesses. Well servicing remains its most stable business line, while competitive pressures in the Permian especially in fluid services continue. We continue to believe that activity levels will improve as operator budgets get reset in 2013, but as BAS highlighted, the Q1 ramp up might be a little slow as we come out of the holidays as we have seen in the past in well servicing. Although these issues keep the near-term outlook mixed, BAS' oil leveraged businesses still causes us to maintain our BUY rating.” Basic Energy Services closed on Tuesday at $11.41.