UPDATE: Wunderlich Securities Reiterates Hold Rating, Lowers PT on Basic Energy Services Given Macro Factors and Multiple Compression

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler reiterated a Hold rating on

, but lowered the price target from $27.00 to $20.00. In the report, Wunderlich Securities noted, “Basic Energy Services (BAS) released its September activity data last week during the bloodbath of energy stocks and despite some solid commentary on its business for 3Q14 the macro concerns lumped it in with the rest of the world. Focusing simply on Basic's business paints a relatively solid picture as the completion work continues to see nice increases as new horsepower additions were deployed and the market for services remains robust. The well servicing and fluids businesses hung in there essentially though pricing remains tough due to labor and other cost increases. Overall business in 3Q14 was strong and better than either expectations or guidance; but with the tough macro environment out there all it seems matters are the current/future oil prices and what it means for activity.” Basic Energy Services closed on Friday at $15.55.