Cactus initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Cactus with a Neutral rating and $60 price target. The surface equipment provider of highly engineered products used in the drilling and completion of oil and gas wells has “developed one of the most successful OFS franchises” in North America, but the firm starts the stock at Neutral as it thinks Street expectations will need to be reset slightly lower given the greater than expected pullback in the U.S. rig count.