JP Morgan Cazenove has downgraded its investment rating on rig builder Lamprell (LON:LAM) to 'neutral' from 'overweight', which it says is due to increased 2017 earnings risk.
The broker added: "Lamprell's $25m settlement with Ensco for the late delivery of Ensco 140 was higher than we anticipated.
"There is no clarity on the timing or amount it can recover from Cameron, thus we no longer account for this in our forecasts.
"LAM's poor order intake and low revenue coverage for 2017 (16% from current backlog) remain key risks."
Analysts have cut their price target to 58 pence per share from 90 pence.
At 2:19pm: (LON:LAM) Lamprell PLC share price was -5.75p at 62.5p