NEW YORK (TheStreet) -- Shares of Pioneer Energy Services (PES) are declining 3.83% to $6.27 after Jefferies lowered its price target to $6.5 from $8 while maintaining its "hold" rating.

The firm lowered its price target due to continued weakness in pricing and utilization as well as impact from adverse weather in certain of its operating locations, Barclays noted.

"We now model Production Services revenues to decline 17% sequentially which is in-line with company's guidance of 16%-20% revenue decline," Barclays analysts said.

On the drilling side, the company's U.S. drilling business continues to be under pressure with current utilization at 53% on a fast declining asset base, Barclays added.

Pioneer Energy Services provides drilling services and production services to oil and gas exploration, and production companies throughout onshore oil and gas producing regions of the U.S. and in Colombia.

Separately, TheStreet Ratings team rates PIONEER ENERGY SERVICES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PIONEER ENERGY SERVICES CORP (PES) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PIONEER ENERGY SERVICES CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, PIONEER ENERGY SERVICES CORP reported poor results of -$0.61 versus -$0.58 in the prior year. For the next year, the market is expecting a contraction of 18.0% in earnings (-$0.72 versus -$0.61).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 366.0% when compared to the same quarter one year ago, falling from -$2.58 million to -$12.02 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, PIONEER ENERGY SERVICES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PIONEER ENERGY SERVICES CORP is currently lower than what is desirable, coming in at 31.79%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.20% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 63.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 375.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • You can view the full analysis from the report here: PES Ratings Report