The Globe and Mail reports in its Friday, May 6, edition that Canaccord Genuity analyst John Bereznicki has cut Essential Energy Services (60 cents) to "hold" from "buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Bereznicki issued his downgrade following the release of first quarter 2016 financial results that "reflect severe margin pressures." On Wednesday, Essential Energy posted earnings before interest, taxes, depreciation and amortization (EBITDA) of a loss of $800,000, excluding $1.7-million in severance costs. The result fell short of the analyst's forecast of $3.2-million. Essential Energy also suspended its dividend and reaffirmed its commitment to cutting costs, citing "further deterioration in industry fundamentals and the weak industry outlook." Mr. Bereznicki says in a note: "Despite these efforts, Essential's negative Q1/16 EBITDA performance suggests to us it is facing severe cyclical headwinds and structural challenges in its well servicing operation. We believe this may delay the company's participation in a fundamental recovery." Mr. Bereznicki reduced his target price for the stock to 75 cents from 85 cents. Analysts on average target the shares at 92 cents.