NEW YORK (TheStreet) -- Shares of Key Energy Services (KEG) are soaring, higher by 15.25% to $1.36 in early market trading on Wednesday, after the company was upgraded to "outperform" from "sector perform" by analysts at RBC Capital this morning.
Analysts at the firm lowered their price target to $4, despite its higher rating.
Yesterday, shares of Key Energy were higher by about 11.43% to $1.17 on heavy volume in mid-afternoon trading, as energy stocks rallied with the slight gain in oil prices.
The rise in oil prices yesterday was due to a smaller than expected drop in U.S. crude supplies, MarketWatch reported.
Houston, TX-based Key is an onshore, rig-based well servicing contractor that provides a range of well services to major oil companies, foreign national oil companies and independent oil and natural gas production companies.
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."