NEW YORK (TheStreet) -- Shares of Key Energy Services Inc. (KEG) are down by 5.79% to $1.54 in early afternoon trading on Tuesday, as some stocks in the energy sector react negatively to Bank of America/Merrill Lynch downgrading the sector to "market weight."
Bank of America/Merrill Lynch reduced its rating on the energy sector in the wake of OPEC's decision not to cut oil production. OPEC made the announcement last week and as a result oil prices began to decline, along with energy stocks.
"Buying energy on the premise that oil prices should stabilize at much higher levels is no longer the base case. With OPEC's decision to maintain, rather than modestly cut, production, our strategists now see $70-$75 as the 2015 range for Brent, a drop from the prior forecast of $90," Bank of America said in an analysts note today.
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Separately, TheStreet Ratings team rates KEY ENERGY SERVICES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: