Jefferies Cuts Price Target on C&J Energy Services (CJES) Following a Credit Facility Amendment

Jefferies reiterated a Buy rating on C&J Energy Services (NYSE: CJES), and cut the price target to $10.00 (from $11.00), following a favorable amendment to its credit facility. The new terms place the onus on cost management.

Analyst Brad Handler commented, "CJES negotiated a favorable amendment to its credit facility, in our view. Given the unfavorable—and worsening—environment, the new terms place the onus on cost management. However, we believe investors meaningfully underestimate the substantial (if difficult to quantify) room to cut costs which should, we think, allow CJES to meet EBITDA covenants. We retain our BUY rating; we find support on a mid-cycle view and asset (replacement value basis)."

For an analyst ratings summary and ratings history on C&J Energy Services click here. For more ratings news on C&J Energy Services click here.

Shares of C&J Energy Services closed at $3.52 yesterday.

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