Another day, another analyst telling clients to think twice about buying shares in Wood Group, the engineering contractor. Morgan Stanley this week downgraded the stock to “equal weight”, claiming evidence that profits are improving quicker than hoped was needed to sustain a winter rally when the shares leapt by more than 60 per cent. “With the [recent] trading update likely to drive small consensus downgrades, not upgrades, this looks more challenging in the near term,” the analysts concluded.
Bank of America suits followed suit, cutting their rating to “neutral” as they warned that the market has started to price in “a lot more than just a gentle recovery” in spending among the big energy companies. That spells bad news for Wood, which makes a third
