What Wall Street Predicts 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.

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.”

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.

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.

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.