Basic Energy Services Inc. (fka BASXQ)

[Timothy Smith]

Basic Energy Services (BAS -4.7%) is downgraded to In-line from Outperform with a $4.75 price target, cut from $10, at Imperial Capital.

The firm believes that while BAS is well positioned to ultimately benefit from a recovery in U.S. onshore E&P activity given its diverse service mix and attractive geographic footprint, it views near-term upside as limited, as "the industry downturn poses risk to earnings, balance sheet leverage is substantial, and the stock trades at a premium to peers."

BAS exited Q2 with $208M in liquidity, which Imperial says should prove sufficient to fund the company’s business needs over the next 12-18 months.