October 15, 2018 / 3:51 PM / 7 months ago

BUZZ-NCS Multistage extends slide: WFC downgrades on Canada risk

** Shares of NCS Multistage Holdings Inc drops 12 pct after Wells Fargo demoted to “market perform” from “outperform”

** Broker cuts PT from $21 to $15, lowest on the Street

** Stock currently down 10.9 pct at $13.26 , among top 5 percentage losers on the Nasdaq

** In a note which says despite expected short-term volatility, “long-term value could be compelling” for small/midcap oil services & equipment cos, lead analyst Judson Bailey cites Canadian risk as impetus for NCSM downgrade

** Bailey notes that Canadian activity accounts for more than half of NCSM’s revenues, writes that WCS (Western Canadian Select) oil price pressures may not alleviate until 2020 due to pipeline constraints

** Today’s drop extends stock’s slide, over last 4 sessions it has lost over a fifth of its value since Oct 10 when co filed 8-K with SEC, amending and restating a credit agreement dated May 4, 2017

** Of 8 analysts covering NCSM, 6 rate co “buy” or stronger, remaining 2 “hold”; median PT $21

** Today’s drop pulls stock firmly in negative territory for 2018, now down >10 pct since the beginning of the year (Reporting by Stephen Culp)

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