UPDATE: J.P. Morgan Initiates Complete Production Services at Overweight

J.P. Morgan is out with its report today on Complete Production Services CPX, initiating CPX at Overweight. In a note to clients, J.P. Morgan writes, "We are initiating with an OW rating on Complete Production Services, a mid-cap oilfield services provider that is heavily levered to the North American land market. Diversified enough to compete with large caps in the emerging resource plays, CPX provides both operating leverage and a re-rating opportunity, in our view, as the land rig count continues to move higher through 2012. Although investors are concerned about new equipment capacity coming to market, we believe the NA market has become inherently less cyclical and that CPX's current discount is unwarranted." J.P. Morgan maintains a $42 PT on CPX. Shares of CPX closed Wednesday at $32.46, up 4.51% from Tuesday's close.