Canaccord Genuity Maintains a 'Buy' on Key Energy Services (KEG); Lower Q4, Healthy Y/Y Growth in 2012
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Price: $0.27 --0%
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity maintains a 'Buy' on Key Energy Services (NYSE: KEG) price target of $15.00.
Canaccord analyst, Scott Burk, said, "Key's guidance reduces the Q4 outlook, but management emphasized that even if E&P capex is flat in 2012, Key should generate higher US revenues and EBITDA due to a resurgence of workover activities by deep-pocked large clients and a better business mix."
"Seasonality and G&A spending offset a full quarter of Edge operations, reducing our Q4 estimate from $0.44/sh to $0.28/sh. We are also reducing 2012 estimates based on lower FY Edge contributions, but still expect significant improvement over 2011 levels."
For more ratings news on Key Energy Services click here and for the rating history of Key Energy Services click here.
Shares of Key Energy Services closed at $13.39 yesterday.
Canaccord analyst, Scott Burk, said, "Key's guidance reduces the Q4 outlook, but management emphasized that even if E&P capex is flat in 2012, Key should generate higher US revenues and EBITDA due to a resurgence of workover activities by deep-pocked large clients and a better business mix."
"Seasonality and G&A spending offset a full quarter of Edge operations, reducing our Q4 estimate from $0.44/sh to $0.28/sh. We are also reducing 2012 estimates based on lower FY Edge contributions, but still expect significant improvement over 2011 levels."
For more ratings news on Key Energy Services click here and for the rating history of Key Energy Services click here.
Shares of Key Energy Services closed at $13.39 yesterday.
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