Shares of Smith International Drop As Citi Downgrades After Recent Jump in Stock Price

NEW YORK (AP) -- Shares of Smith International Inc. fell Friday morning after recent stock gains led an analyst to downgrade the oilfield service provider.

The stock lost $2.01, or 2.9 percent, to $68.01 after the opening bell.

Citi Investment Research analyst Geoff Kieburtz cut his rating to "Hold" from "Buy" and said valuation is full at its current level. The stock has jumped about 23 percent since the Houston-based company posted a 17 percent jump in fourth-quarter profit Jan. 29.

Strong international growth will likely be tempered by "moderate" improvement in North American revenue, he said.

Kieburtz cut his first-quarter earnings estimate to 85 cents per share from 86 cents per share. Analysts polled by Thomson Financial expect, on average, earnings of 87 cents per share.