Canaccord Genuity Maintains a 'Buy' on Basic Energy Services (BAS); Cautious Outlook Hits Stock
Tweet Send to a FriendGet Alerts BAS Hot Sheet
Price: $13.38 -1.83%
Rating Summary:
7 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
7 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade BAS Now!
Canaccord Genuity maintains a 'Buy' on Basic Energy Services (NYSE: BAS) price target of $28.00.
Canaccord analyst, Scott Burk, said, "Similar to Halliburton (NYSE: HAL), the market seems to be shooting the messenger as BAS underperformed by 7% Friday after the company cautioned about seasonal winter downside and possibly lower capital spending while observing the E&P reaction to lower and volatile oil prices. Although we see a lack of near-term catalysts other than a possible winter oil price improvement, we believe with BAS shares down ~50% since mid-July they already price lower earnings and a moderate recession."
"Read throughs. Other NAM-focused service companies may face similar downside when they report in the coming weeks, so we believe investors should consider going short some of the upcoming companies, while going long names like HAL and BAS that have already taken the quarterly hit. Long-only investors should consider being long offshore drillers (Atwood (NYSE: ATW) and Ensco (NYSE: ESV) are our favorites) and names with more international focus (Weatherford (NYSE: WFT))."
For more ratings news on Basic Energy Services click here and for the rating history of Basic Energy Services click here.
Shares of Basic Energy Services closed at $16.70 yesterday, with a 52 week range of $10.41-$37.79.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Canaccord analyst, Scott Burk, said, "Similar to Halliburton (NYSE: HAL), the market seems to be shooting the messenger as BAS underperformed by 7% Friday after the company cautioned about seasonal winter downside and possibly lower capital spending while observing the E&P reaction to lower and volatile oil prices. Although we see a lack of near-term catalysts other than a possible winter oil price improvement, we believe with BAS shares down ~50% since mid-July they already price lower earnings and a moderate recession."
"Read throughs. Other NAM-focused service companies may face similar downside when they report in the coming weeks, so we believe investors should consider going short some of the upcoming companies, while going long names like HAL and BAS that have already taken the quarterly hit. Long-only investors should consider being long offshore drillers (Atwood (NYSE: ATW) and Ensco (NYSE: ESV) are our favorites) and names with more international focus (Weatherford (NYSE: WFT))."
For more ratings news on Basic Energy Services click here and for the rating history of Basic Energy Services click here.
Shares of Basic Energy Services closed at $16.70 yesterday, with a 52 week range of $10.41-$37.79.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- Wedbush Starts USG Corp. (USG) at Neutral
- Wedbush Starts Owens Corning (OC) at Outperform
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
