Piper Jaffray analyst John Watson downgraded KLX Energy Services to Neutral from Overweight and lowered his price target for the shares to $25.50 from $29.50. Given the Q1 results, the likelihood of a holiday slowdown in Q4, channel checks which suggest more large diameter coiled tubing units are set to come to market, and the lack of a clear path towards wireline pricing improving meaningfully in the near, KLX may struggle to achieve its 2019 guidance, Watson tells investors in a research note. He believes this could lead to the stock underperforming.