UPDATE: Jefferies Downgrades Superior Energy Services to Hold, Lowers PT as 3Q Miss Highlights Vulnerable Position

In a report published Wednesday, Jefferies analyst Brad Handler downgraded the rating on Superior Energy Services SPN from Buy to Hold, and lowered the price target from $32.00 to $28.00. In the report, Jefferies noted, “We downgrade SPN to Hold from Buy and lower our PT to $28 from $32. We more fully reflect structural concerns regarding SPN's coiled tubing and fluid handling lines; these plus contract rolls in pumping (combined 40% of revenues) suggest EPS risk for 2014 even with cost reduction efforts (and we lower '14E EPS to $2 from $2.25). Cash return prospects partially offset, but FCF may prove more limited in '14E (slowing buyback pace).” Superior Energy Services closed on Tuesday at $25.28.