NEW YORK (TheStreet) -- Shares of Key Energy Services (KEG) are slipping, down 8.85% to $1.03 in late morning trading Tuesday, after analysts at Wunderlich downgraded and cut price targets on numerous oil companies this morning, including Key Energy, amid a bearish outlook.
Analysts at the firm downgraded Key Energy to "sell" from "hold" and removed its price target of $3 on shares of the onshore, rig-based well servicing contractor.
Wunderlich said in a note, "While the impact of WTI oil moving from basically $100/bbl to $60/bbl in just a few months hasn't been felt just yet, rest assured the pain is coming - and coming soon. What is even more scary about this downturn than the 2008/2009 difficulty is that this time it looks as if there is no basin or commodity to shift activity into."
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:
"We rate KEY ENERGY SERVICES INC (KEG) 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 weak operating cash flow."