Basic Energy Services (NYSE:BAS) Fully Valued Until Gas Activity Picks Up

Basic Energy Services (NYSE:BAS) is valued as it should be based on activity related to gas, and until that picks up, that should remain the same for them.

"BAS's focus has traditionally been well servicing, though much of their recovery has been predicated on completion services. While thematically, BAS has been well positioned to benefit from completion related pricing increases as a combo of service intensity increases with limited inventory, we see little incremental opportunity for margin appreciation until gas related activity picks up. With more equipment adds and the wave of held-by-production drilling activity subsiding, we continue to view BAS as fully valued, albeit at a mean-cycle multiple," said UBS (NYSE:UBS).

UBS maintains their "Neutral" rating on Basic Energy. Basic was trading at $13.72, losing $0.17, or 1.22 percent at 12:54 PM EST. UBS has a price target of $14 on them, increasing it from $9.