Amec downgraded by Exane

Exane BNP Paribas has cut its investment rating on oilfield services group Amec (LON:AMFW) to 'underperform' from 'neutral', stating that the downside is still underappreciated.

The broker added: "We are downgrading AMFW to Underperform as: (1) We are below consensus for 2017-18; (2) We have concerns that underlying cash generation will continued to be weaker than consensus expects (no organic debt paydown until 2019); (3) and therefore that more radical action on the balance sheet is warranted; (4) we are also worried that changes in the US could impair the value of two of AMFW's most successful businesses - US solar and Environment & Infrastructure."

Analysts have lowered their target to 395 pence per share (from 505 pence) but reckon around 350 pence may offer a better entry point.

At 2:44pm: (LON:AMFW) Amec Foster Wheeler PLC share price was -8p at 425.2p