Dril-Quip, Inc. (DRQ)

[eFinanceMarkets]

Dril-Quip downgraded at Barclays on lack of confidence in offshore recovery

Dril-Quip (DRQ -3.6%) is downgraded to Equal Weight from Overweight with a $57 price target, cut from $77, at Barclays, which says it is no longer confident in an early 2018 offshore recovery.

Barclays also is concerned that DRQ's ultimate earnings power this cycle (2019-20) will be considerably less than in the last one (2010-14) without a massive resurgence in floating rig demand, which the firm says is hard to envision without a fundamental shift in oil prices.

The firm says it upgraded DRQ earlier this year on the view that the company would be one of the first to see improvement as its primary business would experience an inventory re-stocking following the de-stocking over the past two years.