NEW YORK (TheStreet) -- Shares of Laredo Petroleum (LPI) were down 3.03% to $9.59 in late morning trading Tuesday after Mizuho Securities downgraded the stock to "neutral" from "buy" and cut its price target to $10 from $24.
Bank of America/Merrill Lynch also downgraded the energy sector to "market weight" after OPEC decided last week not to cut oil production and to keep its target at 30 million barrels per day, a move that could leave the market oversupplied. The announcement sent oil prices spiraling downward.
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"With the collapse in crude, the sector now trades at a 20% discount to the S&P 500, where it has historically traded in-line with the market, but further estimate cuts are likely to come, [as] prices are falling faster than earnings are deteriorating," the firm said.
The stock hit an intraday low of $9.34 as of 11:53 a.m., slightly greater than the 52-week low mark of $9.32.
Separately, TheStreet Ratings team rates LAREDO PETROLEUM INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAREDO PETROLEUM INC (LPI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."