UPDATE: Deutsche Bank Downgrades Newfield Exploration to Hold

Deutsche Bank lowers its rating on Newfield Exploration

to Hold from Buy and lowers its price target to $45 from $56 on tough outlook for 2012. Deutsche Bank says, "FY11 results and the FY12 outlook from NFX highlighted what we expected to be a tough print as reduced activity stemmed operating momentum. While clearly a transition year, we have viewed the 2012 outlook as palatable as an inventory of uncompleted wells and retrenchment into core regions would mitigate risks to the outlook. With 'flat' production now expected for 2012, focus shifting to a 'new' play, and the liquids growth outlook in 2013 still a key question we cut our rating to Hold." NFX closed at $42.25 a share on Tuesday.