ONEOK cut at Jefferies; Bakken rebound 'far from certain'

Jefferies downgraded ONEOK on Wednesday, saying the case for a meaningful acceleration in Bakken production growth has weakened. The firm described a resurgence in the region as "far from certain" despite the recent rally in oil prices.

The downgrade signals limited near-term upside for the Oklahoma-based midstream operator, which has a large footprint in the Bakken. ONEOK shares fell 0.8% in early trading. The stock carries an Alpha Score of 60 out of 100 at AlphaScala, a moderate rating in the energy sector.

Jefferies' caution stands out against a broader oil rally fueled by supply concerns. The analyst said the market may be pricing in a Bakken recovery that the data does not yet support. ONEOK traded down 0.8% in early trading.