Morgan Keegan Comments on Key Energy Services

Morgan Keegan has published a report on Key Energy Services KEG raising the price target on the energy company from $23 to $27 In the report, Morgan Keegan wrote, "Our forecast is reasonable, but we do not believe it is aggressive. High and growing demand, increasing service intensity and acute labor constraints are driving shortages and generating pricing power for the well services sector. Key's management made clear that it will not un-stack idle equipment or add new capacity unless margin/return/cash flow hurdles are met. It is this approach that indicates to us that 2012 possesses greater upside potential if idle capacity is brought back in service." Morgan Keegan rated Key Energy Services an Outperform with a price target raised from $23.00 to $27.00. Key Energy Services closed Friday at $19.49.