FBR Capital Upgrades Key Energy (KEG) to Outperform; Sees Strong H213
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Price: $0.27 --0%
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
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FBR Capital boosts Key Energy Services (KEG) from Market Perform to Outperform, with a price target of $10.
FBR sees activity levels improving in the back-half of 2013 despite a slow start to the year. The firm also sees investors giving Key credit for earnings potential in 2014 towards the latter-part of the current year.
"We have confidence that the execution issues the company faced in 2012 are behind the firm," FBR noted. "We believe 1Q13 earnings guidance is achievable, and we think the current valuation does not reflect healthy levels of growth potential in certain domestic and international markets over the intermediate and long-term time horizon."
FBR likes Key's LatAm exposure, with particular emphasis on Mexico given increasing activity in the region. The firm sees "240 basis points of expansion in average international operating margins in 2013."
Finally, FBR noted that Key has a strong position in the Permian and "the shift to more horizontal completion work in the region will benefit Key across several product lines as 2013 progresses."
Shares of Key are indicated for a higher open Wednesday.
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 $7.40 yesterday.
FBR sees activity levels improving in the back-half of 2013 despite a slow start to the year. The firm also sees investors giving Key credit for earnings potential in 2014 towards the latter-part of the current year.
"We have confidence that the execution issues the company faced in 2012 are behind the firm," FBR noted. "We believe 1Q13 earnings guidance is achievable, and we think the current valuation does not reflect healthy levels of growth potential in certain domestic and international markets over the intermediate and long-term time horizon."
FBR likes Key's LatAm exposure, with particular emphasis on Mexico given increasing activity in the region. The firm sees "240 basis points of expansion in average international operating margins in 2013."
Finally, FBR noted that Key has a strong position in the Permian and "the shift to more horizontal completion work in the region will benefit Key across several product lines as 2013 progresses."
Shares of Key are indicated for a higher open Wednesday.
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 $7.40 yesterday.
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