Buy Key Energy (NYSE:KEG) on Weakness Says FBR

Key Energy Services (NYSE:KEG) had their price target boosted by FBR Capital, as they see solid secular trends in the industry, along with significant upside potential for their share price.

FBR says, "We are raising our price target and reiterating our rating due to favorable secular trends in the industry and significant upside to the firm's current share price. However, we expect the company's fourth quarter to be close to in line with consensus estimates when most other U.S. land leverage stocks should post positive surprises. As such, we believe that the stock could show some weakness around earnings. If this materializes, we would use it to add to positions in KEG as the outlook for both parts of the company should only improve through 2011...Our estimates are now ($0.04), $0.65 and $0.75 for fiscal years 2010, 2011 and 2012, respectively."

FBR Capital maintains an "Outperform" on Key Energy Services (KEG), which closed Tuesday at $12.79, dropping $0.26, or 1.99 percent. FBR raised their price target on Key Energy from $13 to $16.