Petrofac now "up with events", as Canaccord downgrades to 'hold'

Canaccord Genuity has cut its rating for oilfield services group Petrofac from 'buy' to 'hold' after an "impressive run" in the stock over recent months.

The broker acknowledged that Petrofac's results in February were well-received by the market "and importantly management has been clear that it is not satisfied with the group's current performance".

However, it pointed out the stock is still up some 65% from the lows of sub-600p reached in January.

"Whilst we remain long-term believers in the outlook for the Middle East and offshore market, we note that current valuation is well up with events," Canaccord said.

The broker pointed out that Petrofac's valuation is currently trading close to sector peers Wood Group and Amec Foster Wheeler.

The stock was down 2% at 963.5p by 11:48.