UPDATE: ISI Group Downgrades Oil States International to Neutral on Current Uncertainty
In a report published Friday, ISI Group analyst Coleman W. Sullivan downgraded the rating on Oil States International (NYSE: OIS) from Strong Buy to Neutral.
In the report, Sullivan noted, “Although we believe a value creating opportunity may very well exist to convert OIS' Accommodations business to a REIT structure, we are downgrading (somewhat reluctantly) the shares to Neutral from Strong Buy as we believe too many uncertainties still remain regarding the structure and ultimate valuation of the REIT entity to recommend aggressively buying the shares at current levels. However, we would not be surprised to see the shares trade between $95-$105 as the market discounts the viability of such a structure.”
Oil States International closed on Thursday at $91.99.
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