UPDATE: Goldman Sachs Downgrades Oasis Petroleum to Buy, Lowers PT as Recent News Negatively Impacts Forecasts

In a report published Wednesday, Goldman Sachs analyst Joseph B. Stewart downgraded the rating on

from CL-Buy to Buy, and lowered the price target from $63.00 to $53.00. In the report, Goldman Sachs noted, “We remove OAS from the Conviction List. Since adding OAS to the CL on September 23, 2013, shares are down 13%, vs. onshore SMID E&Ps -6% and the Russell 2000 +3%. OAS began underperforming in mid-October, possibly due to the deterioration of US oil sentiment followed by weather and regulatory concerns in the Bakken. On February 4, OAS announced a disappointing initial 2014 outlook with worse than expected capex, production and cost guidance, in addition to lower EUR estimates for the Three Forks. This latest news negatively impacted our forecasts for growth/returns and lowered the return potential to our price target.” Oasis Petroleum closed on Tuesday at $39.09.