UPDATE: Goldman Sachs Downgrades C&J Energy Services to Neutral, Lowers PT on Increased Cost Control Focus

In a report published Monday, Goldman Sachs analyst Michael Cerasoli downgraded the rating on C&J Energy Services

from Buy to Neutral, and lowered the price target from $28.00 to $22.00. In the report, Cerasoli noted, “We downgrade CJES to Neutral from Buy, lower our EV/EBITDA-based, 12-month target price by $6 to $22, and reduce our estimates. Key to our Buy rating was that CJES' value-added processes would better shield it during a period of E&P spending pullbacks. We were wrong, as E&Ps increased focus on cost controls is resulting in more commodity type pressure pumping jobs than those suited to CJES' competitive strengths, resulting in lower than forecast equipment utilization. Since its addition to the Buy List on December 18, 2012, CJES is -16% vs. +13% for the Russell 2000. Over the past 12 months, CJES/Russell 2000 is 0%/+18%.” C&J Energy Services closed on Friday at $18.08.