Nuverra extends losses despite defense by Jefferies analyst

|By:, SA News Editor

Nuverra Environmental (NES -6.6%) extends yesterday's losses sparked by a negative post on Seeking Alpha, which said "a liquidity crisis is looming" and shares could fall 80% over the next year.

Jefferies analyst Scott Graham is out defending NES, disputing claims that the company has a high probability of bankruptcy and saying the article ignores data on financial ratios "as seen by the banks."

Graham also points out that Dick Heckmann has not jumped ship and remains chairman with significant ownership.

The analyst is not positive on the stock, however, maintaining a Hold rating and cutting his price target to $2.75 from $3.25.