Market Overview

Bank Of America Downgrades The Oil Sector

Bank Of America Downgrades The Oil Sector
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  • Bank of America Merrill Lynch downgraded a bundle of oil & energy stocks due to the highly volatile oil prices.
  • The firm downgraded six stocks, five of which had a drastic price target drop.
  • The firm notes an extended commodity weakness as a major reason for the downgrades.

The Dow Jones Industrial Index sank more than 1,000 points on Monday morning caused by China’s volatile Shanghai index, which tumbled 8.5 percent. Crude oil also played a major role as it dropped 5 percent to the $38 level.

Worries about China’s growth and its currency are scaring investors into a sell-off. Commodities continued to get hit hard as oil dropped to prices experienced back in March of 2009.

Related Link: Black Monday, Part Deux: Dow Falls 1,000 Points, Several Blue Chips Halted

Bank of America on Monday revised their ratings on some major oil players; downgraded Continental Resources Inc (NYSE: CLR) from Buy to Neutral, lowering its price target from $70 down to $44. The firm also downgraded Marathon Petroleum Corporation (NYSE: MPC) from Neutral to Underperform and lowered its price target from $64 to $56.

Marathon Oil Corporation (NYSE: MRO) was also downgraded from Buy rating down to Neutral, its price target lowered from $36 to $20. Noble Energy (NYSE: NBL) was downgraded from Buy rating to Neutral and lowered its price target from $65 to $44.

Valero Energy Corporation (NYSE: VLO) was brought down from Neutral to Underperform, but the firm raised its price target from $64 to $68. Finally, the firm downgraded Whiting Petroleum Corp (NYSE: WLL) from Buy to Neutral with its price target lowered from $38 down to $27.

Latest Ratings for CLR

Feb 2019KeyBancInitiates Coverage OnOverweight
Jan 2019MizuhoInitiates Coverage OnBuy
Dec 2018Evercore ISI GroupDowngradesOutperformIn-Line

View More Analyst Ratings for CLR
View the Latest Analyst Ratings

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