Core Laboratories downgraded to Sell from Neutral at Citi

Citi downgraded Core Laboratories to Sell from Neutral with a price target of $21, down from $22. The firm reduced its Q2 EBITDA forecast by 5% to $18.9M, 6% below the consensus, on North America completion weakness negatively impacting Production Enhancement. Core shares are up 20% year-to-date and have outperformed its oilfield services peers materially, but “this run likely ends soon given negative revisions,” the analyst tells investors in a research note. While the company’s Reservoir Description business is improving, the benefit of an improving deepwater market is trumped near-term by the weakness in the U.S., says Citi.