Imperial Capital Cuts Price Target on Basic Energy Services (BAS) Ahead of 4Q Earnings

Imperial Capital maintained an In-Line rating on Basic Energy Services (NYSE: BAS), and cut the price target to $2.50 (from $4.50), ahead of the company's 4Q earnings report. Given the persistent weakness in oil & gas prices and U.S. onshore rig count, Imperial expects the E&P downturn to continue for the remainder of FY16, at a minimum.

Analyst Scott Levine commented, "We are maintaining our In-Line rating on BAS shares and lowering our one-year price target to $2.50 from $4.50. Our price target is about 21% above the recent share price. We think BAS is well positioned to ultimately benefit from a recovery in onshore E&P activity, given its diversified business mix and attractive geographic footprint. That said, we view upside as limited in the near term, as the industry downturn poses risk to earnings, balance sheet leverage remains substantial, and the stock trades at a premium to peers."

For an analyst ratings summary and ratings history on Basic Energy Services click here. For more ratings news on Basic Energy Services click here.

Shares of Basic Energy Services closed at $2.06 yesterday.

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