UPDATE: Goldman Sachs Initiates C&J Energy Services at Buy on Utilization Stabilization

Goldman Sachs initiated coverage on C&J Energy Services CJES with a Buy rating and a $26 price target. Goldman Sachs commented, "We initiate coverage of CJES with a Buy rating in the context of our attractive view on Oilfield Services, and see 29% upside to our $26 target, 12 month price versus 22% average upside for our coverage. We believe CJES' transition of its hydraulic fracturing fleet from take-or-pay contracts to the spot market will occur more smoothly than most expect. While our model assumes the company will be impacted by the lower pricing environment, we see utilization holding steady on account of its operational reputation and good timing related to our higher-level call that NAM land will positively inflect in early-2013." C&J Energy Services closed at $20.36 on Friday.