Deutsche Bank Downgrades Basic Energy Services (BAS) to Hold
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Deutsche Bank downgraded Basic Energy Services (NYSE: BAS) from Buy to Hold with a price target of $0.50 (from $2.00).
Analyst Mike Urban said, "Despite a solid Q3 result, we are downgrading BAS to HOLD from BUY as the company has entered into Chapter 11 reorganization. While the reorganization will likely create a sustainable path forward for a company we see as an early cycle beneficiary the reorganization will almost entirely wipe out existing equity holders. Existing equity holders will be left with just 0.5% of pro-forma BAS equity. We think upstream spending has bottomed and expect the initial spend will focus on production given the low risk, quick cash conversion and little capital outlay, however existing equity holders will not share in this."
Shares of Basic Energy Services closed at $0.44 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesDeutsche Bank, Bankruptcy
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