UPDATE: Global Hunter Securities Downgrades Energy XXI to Neutral on Production Headwinds

Global Hunter Securities reduced its rating on Energy XXI

from Buy to Neutral and lowered its price target from $47 to $40. Global Hunter Securities commented, "Given that sequential growth never topped +5% in FY12 and the fact that EXXI's development program in 2013 banks on repeatable success of its still relatively untested horizontal program (15 of 23 development wells this year are slated to be horizontals), we've become more cautious and are lowering our rating to Neutral (from Buy) until we see proof that production can indeed ramp at the clip management projects." Energy XXI closed at $35.15 on Tuesday.