Basic Energy Services downgraded to "market perform"

10/16/06 - Morgan Keegan

NEW YORK, October 16 (newratings.com) - Analysts at Morgan Keegan downgrade Basic Energy Services Inc (BAS) from "outperform" to "market perform," while reducing their estimates for the company.

In a research note published this morning, the analysts mention that the weakness in natural gas prices is due to excess North American supply. The analysts believe that this reflects a temporary pause in the energy cycle and not a cyclical downturn. The EPS estimates for FY06 and FY07 have been reduced from $2.66 to $2.65 and from $3.25 to $3.03, respectively.