MRC Global (MRC) - Get Report shares on Friday dropped after an analyst at Scotia Howard Weil cut his rating and price target on the distributor of pipe, valves and related products and services for the energy industry.
Analyst Vaibhav Vaishnav reduced his rating on the Houston oilfield-services company to sector perform from sector outperform and his target to $11 a share from $17.
MRC shares are trading on Friday down 9.2% at $11.57. The stock was about flat in 2019 through Thursday's close.
"MRC guided down for the third time consecutively. This time midstream activity (about 40% of revenue) is the primary driver, which is surprising," the analyst wrote in a report.
"Even the stable gas utilities business, accounting for about 25% of the company's revenue, is declining sequentially in the third quarter, which is typically the strongest quarter," the analyst wrote.
What could change? The gas utilities business could turn up and grow from a lower base in 2019. And the company could get large U.S. Gulf Coast expansion contract awards, but they are likely to come in second-half 2020, Vaishnav wrote.