Atlas Energy downgraded to Neutral from Buy at Citi

Citi analyst Scott Gruber downgraded Atlas Energy (AESI) to Neutral from Buy with a price target of $22, down from $23. The firm says Atlas has been a stand-out among oilfield services stocks this year, rising 25%, given the growth potential in 2025 associated with start-up of their Dune Express sand conveyor. However, the rally has occurred despite fundamentals weakening materially within the company’s sand production segment, the analyst tells investors in a research note. As such, the resulting multiple expansion has pushed the stock to a full valuation, contends Citi.