Key Energy Services Rating Lowered to Sell at Wunderlich (KEG)
Key Energy Services (NYSE:KEG) was downgraded by equities researchers at Wunderlich from a “hold” rating to a “sell” rating in a research report issued on Tuesday, TheFlyOnTheWall.com reports. They currently have a $6.00 target price on the stock. Wunderlich’s price target indicates a potential downside of 24.24% from the company’s current price.
The analysts wrote, “On the heels of recent results from OFS companies and our bearish stance on certain sectors within the space, and with the run of Key Energy Services’ (KEG) stock, we are downgrading our rating on KEG from Hold to Sell and maintaining a $6 price target. We believe the oversupplied domestic market for many of Key’s business lines, further exacerbated by seasonality issues into 4Q13 and 1Q14, should harm pricing and utilization over the next six months while overall in 2014 we expect the E&Ps to remain content growing activity through increased efficiencies rather than adding to the rig count. Further, the international market remains difficult given the issues in Mexico and early-stage nature of other areas. These headwinds and premium valuation cause us to downgrade from Hold to Sell.”
Several other analysts have also recently commented on the stock. Analysts at Barclays reiterated a “buy” rating on shares of Key Energy Services in a research note to investors on Thursday, September 12th. They now have a $10.00 price target on the stock. Separately, analysts at RBC Capital raised their price target on shares of Key Energy Services from $7.00 to $8.00 in a research note to investors on Thursday, September 12th. They now have a “sector perform” rating on the stock. Finally, analysts at Global Hunter Securities upgraded shares of Key Energy Services from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday, September 3rd. They now have a $8.50 price target on the stock, up previously from $7.25. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $9.13.
Key Energy Services (NYSE:KEG) traded up 6.45% during mid-day trading on Tuesday, hitting $7.92. The stock had a trading volume of 6,308,102 shares. Key Energy Services has a 52 week low of $5.61 and a 52 week high of $9.55. The stock has a 50-day moving average of $6.83 and a 200-day moving average of $6.86. The company’s market cap is $1.207 billion.
Key Energy Services, Inc (NYSE:KEG) is an onshore, rig-based well servicing contractor.
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