UPDATE: Stifel Downgrades Newfield Exploration Co. to Hold, Removes PT on Fair Valuation

In a report published Thursday, Stifel analyst Amir Arif downgraded the rating on Newfield Exploration Co. NFX from Buy to Hold, and removed the $29.00 price target. In the report, Stifel noted, “We are downgrading shares of NFX from Buy to Hold on fair valuation with the stock now exceeding our target price. With the recent stock performance better reflecting the ongoing turnaround and the stock now trading at 4.8x 2014 EV/EBITDA pro forma, we believe the name is now fairly valued near term. On Monday, the Malaysian asset sale did come in better than expected and is reflected in the stock in our view. However, we do not expect a similar upside premium from the planned China asset sale. We think the next key driver for the stock will be delivering on its 2014 guidance, which will play out over the next several quarters. Bottom line, with the recent stock performance reflecting the positive Malaysian asset sale, no positive expectations for the China asset sale, and with the stock at fair value, we believe the near term upside to the stock is limited.” Newfield Exploration Co. closed on Wednesday at $30.74.