UPDATE: Citigroup Downgrades Helmerich & Payne

Analysts at Citigroup on Wednesday downgraded Helmerich & Payne, Inc. (NYSE: HP) from Neutral to Sell and reduced the price target from $71.00 to $55.00.

Scott Gruber and Michael Sabella wrote, "We are downgrading HP based on our view of a likely rate collapse amongst Tier 1 (AC) rigs… we believe the defensive shine on the stock is tarnished by a collapse in rig pricing and utilization, as well as rising risk of contract cancellations/resets."

Helmerich & Payne is expected to see a 900 rig count decline as the price oil is approaching record lows, hurting the company's profitability. The analysts cut EBITDA estimates for the oil company by 20 percent in 2015 from $5.60 to $3.75.

Helmerich & Payne closed Wednesday at $59.67, down 6.5 percent.