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What Wall Street Predicts for Basic Energy Services

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Nov. 20 2020, Updated 4:19 p.m. ET

Wall Street’s forecasts for Basic Energy Services

In this article, we’ll look at Wall Street analysts’ forecasts for Basic Energy Services (BAS) stock following its 2Q17 earnings release.

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Analysts’ rating for Basic Energy Services

On August 1, 2017, ~50% of the sell-side analysts tracking Basic Energy Services rated it a “buy” or some equivalent, according to data compiled by Reuters. Approximately 50% of the analysts recommended a “hold,” while none recommended a “sell” or an equivalent. BAS makes up 2.8% of SPDR S&P Oil & Gas Equipment & Services ETF (XES). Since March 31, 2017, XES has fallen 25% versus a 35% fall in BAS’s stock price during this period.

In comparison, approximately 11% of analysts tracking CARBO Ceramics (CRR) rated it a “buy” or some equivalent. Approximately 78% rated the company a “hold.”

Analysts’ rating changes for BAS

From May 1, 2017, to August 1, 2017, the percentage of analysts recommending a “buy” or some equivalent for BAS has fallen from 71% to 50%. A year ago, ~14% of the sell-side analysts recommended a “buy” for BAS.

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Analysts’ target prices for BAS

Wall Street analysts’ mean target price for BAS on August 1, 2017, was ~$35.6. BAS is currently trading at ~$21.6, implying a ~65% upside at its mean target price. A month ago, analysts’ average target price for BAS was $41.4.

Target prices for BAS’s peers

The mean target price surveyed among sell-side analysts for National Oilwell Varco (NOV) was $36.1 on August 1. NOV is currently trading at ~$31.9, implying a 13% upside at its average target price. The mean target price surveyed among sell-side analysts for Schlumberger (SLB) was $78.6 on August 1. SLB is currently trading at ~$69.0, implying a 14% upside at its average target price. Read Market Realist’s National Oilwell Varco’s 2Q17 Earnings Beat Estimates to know more about NOV’s 2Q17 earnings. The SPX-INDEX rose 11% year-to-date versus a 39% fall in BAS’s stock price.

Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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