S&P Capital IQ Downgrades Newfield Exploration from Strong Buy to Buy

October 20 00:00 2011

NEW YORK, October 20 (RainbowNewsLine.com) – Analyst Michael Kay of S&P Capital IQ downgrades Newfield Exploration Co (NYSE:NFX) from STRONG BUY to BUY. The target price has been reduced from $73 to $53.

Analyst Michael Kay, in a research note published this morning mentions that the company reported its Q3 EPS short of the estimates. The production guidance is reduced by 4%, since the production of 76 Bcfe missed the estimate of 81 Bcfe, however a growth of 5% & 8% is expected in 2011 & 12, respectively. Although Q3 costs were in line with the estimates, increasing costs at Williston Basin impact activity, the analyst says. The EPS estimates for 2011 and 2012 have been reduced from $4.25 to $3.96 and from $5.60 to $5.22, respectively.

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