Citi analyst Scott Gruber downgraded NexTier Oilfield (NEX) to Neutral from Buy with a price target of $9.75, up from $9.50. The analyst applauds the Patterson-UTI (PTEN), NexTier merger of equals and believes the 16% move from their share prices before the Wall Street Journal article is justified based upon the synergy potential of $200M. The firm sees longer-term value, but says this is likely realized after the current slowdown ends. It downgrades NexTier to align with its Neutral rating on Patterson-UTI.
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Published first on TheFly
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