Analysts at the firm downgraded several oilfield services stocks, citing declining crude prices as well as concerns that an extended correction in U.S. oil shale activity is becoming more likely.
Also, analysts at Jefferies Group initiated coverage on shares of Hercules Offshore with a "hold" rating and a price target of $1.50 in a research note today.
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Houston, TX-based Hercules Offshore provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry, with about 2200 employees.
Shares of Hercules Offshore are surging 11.06% to $1.25 in midday trading Wednesday.
Separately, TheStreet Ratings team rates HERCULES OFFSHORE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERCULES OFFSHORE INC (HERO) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk."