McMoRan Exploration (MMR) Downgraded, Shares Fall

Wunderlich Securities analysts Neal Dingmann and Jason Wangler lowered their rating for shares of McMoRan Exploration Company (NYSE: MMR) to Hold from Buy and lowered their price target to $12 per share from $16.

The analysts said that negative publicity from the offshore oil spill in the Gulf of Mexico would depress the stock prices of the entire offshore group.

The analysts said there was a growing political reaction to the oil spill that could have a negative impact on offshore companies for years to come.

The Wunderlich Securities analysts wrote, "McMoRan still has big asset potential. Though we are concerned about the near-term valuation effects on McMoRan shares, we believe the company still has attractive longer-term assets such as its Davy Jones, Blackbeard, Flatrock, Blueberry Hill, and other plays. Company management generally has been unfazed by other setbacks in the past and we believe this time could be no different, though the recent events still affect shareholders."

Shares of McMoRan Exploration Company were down more than 13% to $11.28, during Friday morning trading.