Credit Suisse Downgrading Exterran Holdings

Credit Suisse is out with a research report and downgrading shares of Exterran Holdings EXH to Neutral from Outperform and slashing the price target to $17 from $32. In a note to clients, Credit Suisse writes, "We got ahead of ourselves when we double upgraded EXH to OP in March 2011. We had pre-supposed stability in international execution and given more credit for its business development position. And we frankly didn't adequately risk-weight Fabrication's or Aftermarket's (1) execution and (2) NAM competition (and negative mix shifts). The CEO's departure marks a recognition of the need for change. And, as hinted at below, we could now return to being more aggressive on the value case, especially related to drop downs. But we'll wait for visibility from the company on the steps for improvement." Shares of EXH closed at $13.85 yesterday.