Monday, September 20, 2010

Goldman (NYSE:GS) Downgrades Acergy (Nasdaq:ACGY)

Acergy (Nasdaq:ACGY) was downgraded by Goldman Sachs (NYSE:GS) from "Buy" to "Neutral," saying valuations are weaker than in the past.

Goldman said, "the stock no longer screens attractively in terms of valuation, and we believe there is some risk of consensus earnings downgrades for 2011."

Particulary noted in relationship to its competitors, Acergy is "among the worst positioned of the E&C peers...," taking into account the current 2011 sales backlog cover.

Concerning their subsea umbilicals, risers and flowlines sector, Goldman said they still have strong fundamentals in those segments.

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