Shares of ProPetro Holding Corp. (PUMP) plummeted 5.08% in pre-market trading on Monday, following Citigroup's decision to significantly cut its price target for the company. The investment bank reduced its target price for ProPetro from $10 to $6.50, citing concerns about the outlook for oilfield service companies amid deflating crude prices.

Citigroup's analysis suggests that the oilfield services sector is facing headwinds due to shifting investment strategies of public exploration and production companies. These companies are now focusing on maintenance and efficiency-driven growth to maximize free cash flow, which could impact demand for oilfield services. The bank predicts that if current conditions persist, about 75 oil rigs, or nearly 15% of domestic oil drilling operations, may cease to operate.

The downgrade for ProPetro is part of a broader reassessment of the oilfield services sector by Citigroup. Other companies in the industry, including Halliburton, Schlumberger, and Patterson-UTI Energy, also saw their price targets reduced. This sector-wide adjustment reflects growing concerns about potential margin compression from reduced operating leverage and modestly lower prices in the oilfield services industry.