Zacks Investment Research downgraded shares of Core Laboratories, N.V. (CLB) from NEUTRAL to UNDERPERFORM on January 08, 2015, with a target price of $103.00.
We are downgrading Core Laboratories to Underperform from Neutral in a weak crude pricing environment as the business of oil field services companies is directly correlated to the commodity price. The price of crude has tumbled more than 50% since last June owing to ample supply of the commodity and lackluster global demand. On top of that, oil price is anticipated to remain low in 2015 too. Hence, we don't expect the company to earn considerable cash flows in the coming months. Core Laboratories has also lowered its fourth-quarter 2014 earnings per share (EPS) guidance from its previous projection to $1.53 to $1.56. As a result, we see the company as a risky bet that investors should exit.
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