NEW YORK (TheStreet) -- Shares of LINN Energy (LINE) are falling, down 1.66% to $9.67 in early market trading, after the company had its rating lowered to "neutral" from "outperform" by analysts at RW Baird Tuesday morning, given the recent collapse in crude oil prices.
Analysts at the firm also cut its price target to $10 from $21 on shares of the independent oil and natural gas company.
The firm believes upstream MLPs will be forced to cut distributions based on when debt covenants are tripped if oil prices remain low.
Baird analysts expect the new oil paradigm to last for the foreseeable future.
Separately, TheStreet Ratings team rates LINN ENERGY LLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINN ENERGY LLC (LINE) a SELL. This is driven by some concerns, 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 generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: