UPDATE: Wunderlich Securities Downgrades Cypress Energy Partners LP As Uncertainty Impacts Margins

Courtesy of Benzinga.

In a report published Tuesday, Wunderlich Securities analyst Abhishek Sinha downgraded the rating on Cypress Energy Partners LP (NYSE: CELP) from Buy to Hold, and lowered the price target from $23.00 to $15.00.

In the report, Wunderlich Securities noted, “We are downgrading Cypress Energy Partners (CELP) to Hold from Buy and are lowering our price target from $23 to $15. We expect significant weakness in its Water and Environment Services (W&ES) segment volumes and margins due to the decline in commodity prices and reduction in drilling activities.

“Further, we also estimate a lower demand for its Pipeline Inspection and Integrity Services (PI&IS) business and lower pricing as CELP customers plan for significant capex reductions in 2015. CELP also declined to provide any guidance for 2015 amid rising uncertainty. Although the company has low leverage (0.94x) and $70mm available on its recently revised credit facility of $200mm, we believe the uncertainty in oil prices and lack of a near-term catalyst would keep the stock range-bound.”

Cypress Energy Partners LP closed on Monday at $13.71.

Posted-In: Abhishek Sinha Wunderlich SecuritiesAnalyst Color Downgrades Analyst Ratings