Key Energy Services Price Target Cut to $7.00 (KEG)
Analysts at Wunderlich decreased their price objective on shares of Key Energy Services (NYSE:KEG) from $9.00 to $7.00 in a research report issued to clients and investors on Wednesday. The firm currently has a “hold” rating on the stock. Wunderlich’s target price would suggest a potential upside of 2.04% from the company’s current price.
The analysts wrote, “Key Energy Services (KEG) pre-announced operating EPS in the range of -$0.14 to -$0.15, well below our previous -$0.02 estimate and the Street’s $0.00 forecast due to lower-than-expected activity in California, muted activity increases in the rest of the U.S., and continued struggles internationally. “The company expects revenues to be down 2% sequentially; a surprising statistic given the strength seen in the OFS market overall. This lower revenue figure also is joined by higher costs due to write-offs, redeployment, and severance costs in Russia and Mexico. Overall it’s clear Key is struggling even as the domestic services market is showing overall improvement and, while it has been able to reduce debt nicely, we remain Hold rated given the company-specific headwinds facing KEG.”
A number of other firms have also recently commented on KEG. Analysts at Iberia Capital downgraded shares of Key Energy Services to a “sector perform” rating in a research note on Monday. Separately, analysts at Robert W. Baird cut their price target on shares of Key Energy Services from $11.00 to $10.00 in a research note on Monday. Finally, analysts at Simmons downgraded shares of Key Energy Services from an “overweight” rating to a “neutral” rating in a research note on Monday. Eight investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $9.60.
Shares of Key Energy Services (NYSE:KEG) traded down 0.87% during mid-day trading on Wednesday, hitting $6.80. 253,033 shares of the company’s stock traded hands. Key Energy Services has a 1-year low of $6.06 and a 1-year high of $10.52. The stock’s 50-day moving average is $8.48 and its 200-day moving average is $8.49. The company’s market cap is $1.043 billion.
Key Energy Services (NYSE:KEG) last issued its quarterly earnings data on Wednesday, April 30th. The company reported ($0.06) earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.07) by $0.01. On average, analysts predict that Key Energy Services will post $-0.12 earnings per share for the current fiscal year.
Key Energy Services, Inc (NYSE:KEG) is an onshore, rig-based well servicing contractor.
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