BKR - Core Labs cut to Sell-equivalent at J.P. Morgan on insufficient cash flow

Core Laboratories ([[CLB]] -5%) and Helmerich & Payne ([[HP]] -2.9%) fall sharply after J.P. Morgan downgrades shares to Underweight and Neutral, respectively, following recent runs higher.Core Labs has "disproportionally benefited" from the robust rally in the oilfield services and equipment sector, but JPM analysts led by Sean Meakim believe its cash generation potential is not sufficient to meet expectations.The firm believes in management's ability to steer its balance sheet and generate cash, but does not see enough free cash flow to justify the current valuation, underpinned by this week's election to issue $60M of equity at-the-market.JPM's H&P downgrade is a valuation call, but the firm still considers the stock its top pick in its coverage of land drillers.Elsewhere in the sector, JPM rates Baker Hughes ([[BKR]] -1.4%) and ProPetro ([[PUMP]] -5.3%) at Overweight, Schlumberger ([[SLB]] -2.2%) and Halliburton ([[HAL]] -1.5%) at Neutral, and Nabors ([[NBR]] -6.2%) and Patterson-UTI ([[PTEN]] -5.5%) at Underweight.

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Core Labs cut to Sell-equivalent at J.P. Morgan on insufficient cash flow