UPDATE: Goldman Sachs Downgrades Nabors Following Removal from Conviction List

In a report published Wednesday, Goldman Sachs analyst Waqar Syed downgraded the rating on Nabors (NYSE: NBR) from Conviction List-Buy to Buy, and lowered the price target from $22.00 to $19.50.

In the report, Goldman Sachs noted, “We remove Nabors from the Conviction List but maintain Buy. The company issued an earnings warning, stating that its operating income for 2Q would be in the $88mn to $91mn range, primarily due to a shortfall in Rig Services and Completion and Production businesses. Rig services was impacted by lower sales of capital equipment and rental activity, while Completion and Production business was hurt by adverse weather conditions during the quarter in the Rockies and Canada. Other businesses performed in line or better and gross debt declined by $300mn. Since adding to the Americas Conviction List on 2/14/13, NBR shares are -10.7%, versus +4% for OSX and +8.6% for S&P 500.”

Nabors closed on Tuesday at $16.00.