Nomura has downgraded its recommendation for oil, gas and energy engineer Lamprell from buy to reduce following last week's profit warning.The group said it will most likely make a small loss in the first half of the year (though a recovery is expected in the second half) after it was negatively affected by "progressive delays in key specialised vendor equipment deliveries for new build jackup projects together with the progressive slippage in the timing of expected new project awards and delayed client deliverables.""We believe Lamprell's execution and operational strategy is fundamentally at risk and we were wrong to previously assume the company had turned a new leaf. In our view, the root cause of the problems announced lies with management's inability to execute lump-sum contracts," said analysts at Nomura in a research note on Monday morning."Despite a depressed valuation relative to the sector, our sensitivity analysis of future potential charges implies a negative risk/reward outlook and we recommend a reduce rating and price target of 125p (our updated valuation assumes a one in three probability of further charges over the next 12 months)," they said. The previous target was 430p.The broker has cut its earnings per share (EPS) target by an average 51% for 2012-14 and says that Lamprell should trade at a 25% discount (previously 15%) to the sector.BC