UPDATE: JP Morgan Downgrades SandRidge Energy to Underweight on Risk/Reward
JP Morgan downgraded SandRidge Energy (NYSE: SD) from Overweight to Underweight and lowered the price target from $9.50 to $5.00.
JP Morgan noted, "TPG's consent solicitation is underway and likely will have a result within a few weeks (deadline is March 15th). TPG needs a simple majority of the shares outstanding and, because of the concentration of stock ownership, has a real possibility of winning the vote. If TPG wins, the stock probably moves up, in our view. If TPG loses, the stock likely gets hit hard. Regardless of the near-term stock move, SD seemingly has to go through extraordinary measures to avoid a financial crunch, and we think too much risk exists relative to the stock upside."
SandRidge Energy closed at $6.28 on Monday.
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