UBS Downgrades H&E Equipment Services (HEES) to Neutral

UBS downgraded H&E Equipment Services (NASDAQ: HEES) from Buy to Neutral with a price target of $21.00 (from $43.00). Analyst Steven Fisher tied the downgrade to energy exposure.

"We believe HEES is disproportionately exposed to a likely pullback in energy capex investment, given the pullback in oil prices; over half of HEES' 2013 revenues were generated in the Gulf Coast (52%), with 12% of revenues tied to upstream E&P. While we think HEES' late-cycle crane exposure still holds some potential (& note 2 LNG projects ramping up), and believe HEES will benefit from a secular shift toward equipment rental, and an improving US economy, we think the headwinds from lower oil prices offset these favorable trends. Accordingly, we downgrade shares to Neutral," said Fisher.

For an analyst ratings summary and ratings history on H&E Equipment Services click here. For more ratings news on H&E Equipment Services click here.

Shares of H&E Equipment Services closed at $20.27 yesterday.

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