Canaccord Genuity Maintains a 'Buy' on Key Energy Services (KEG); Weaker Q1, But Healthy Growth in 2012
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Price: $6.09 -1.46%
Rating Summary:
13 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Rating Summary:
13 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Trade KEG Now!
Canaccord Genuity maintains a 'Buy' on Key Energy Services (NYSE: KEG) price target of $19.00.
Analyst, Scott Burk, said, "KEG missed Q4 expectations on weak Argentina results and disruptions from repositioning assets out of NAm gas markets, an issue that could persist in H1/12. However, management still expects robust YoY revenue growth and improving profitability in 2012, which flows through to higher 2013 estimates."
"We continue to recommend KEG long-term as earnings and is more leveraged to oil production than most peers. With more than half of its revenue leveraged to producing wells, we think KEG can trade at a slightly higher multiple than the five-year average low that we use for targets for most of our coverage. Margins seem likely to continue growing slowly for production-oriented services like gas lift, workover rigs and fluid handling."
For an analyst ratings summary and ratings history on Key Energy Services click here. For more ratings news on Key Energy Services click here.
Shares of Key Energy Services closed at $16.01 yesterday, with a 52 week range of $8.27-$20.77.
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Analyst, Scott Burk, said, "KEG missed Q4 expectations on weak Argentina results and disruptions from repositioning assets out of NAm gas markets, an issue that could persist in H1/12. However, management still expects robust YoY revenue growth and improving profitability in 2012, which flows through to higher 2013 estimates."
"We continue to recommend KEG long-term as earnings and is more leveraged to oil production than most peers. With more than half of its revenue leveraged to producing wells, we think KEG can trade at a slightly higher multiple than the five-year average low that we use for targets for most of our coverage. Margins seem likely to continue growing slowly for production-oriented services like gas lift, workover rigs and fluid handling."
For an analyst ratings summary and ratings history on Key Energy Services click here. For more ratings news on Key Energy Services click here.
Shares of Key Energy Services closed at $16.01 yesterday, with a 52 week range of $8.27-$20.77.
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
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