Barclays U.S. Oil Services & Drilling: 2012 Outlook: The Next Mega-Cycle Takes Hold
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Price: $47.40 -1.02%
Rating Summary:
9 Buy, 17 Hold, 3 Sell
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Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
9 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
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Barclays on U.S. Oil Services & Drilling: 2012 Outlook: The Next Mega-Cycle Takes Hold
Analyst, James C. West, said, "The Mega-Cycle is Taking Hold: The next mega cycle for the oil services industry is getting underway. The European debt situation, concerns of a hard landing in China, and the resulting volatility, and depressed valuations in global equity markets are masking this fact. We believe the reason to own oil services stocks is clear: the world is becoming increasingly short energy, hydrocarbon prices are at attractive levels for investment and are likely to rise further, cash flow and thus CAPEX on energy investments are increasing rapidly, and the oil services companies are the bottleneck and likely to capture the economic benefit of this unfolding trend. We remain bullish on the oil services, equipment and drilling companies and we believe the group will significantly outperform the broader equity market over the next several years."
"Raising Price Targets Across the Board: We are rolling our price target derivations to 2013 earnings/EBITDA and raising our price targets for the oil services, equipment and drilling stocks across the board. The average upside to our price targets is 58%. The most attractive stocks are the large-cap diversified companies (BHI, HAL, SLB and WFT) with an average upside of 101%, the capital equipment names (CAM and NOV) with an average upside of 59% (ex-FTI and DRQ), several of the offshore drillers (RIG, RDC, NE and ESV), and select smid caps such as HOS, GLF, SPN, DRC, GGS and IO. We also think the small- and mid-cap NAM-focused stocks are attractive, especially with most trading below 5x EV/EBITDA on 2012. With this report we are upgrading PTEN to 1-OW (from 2-EW) and lowering DO to 3-UW. Inside the report we have company-specific outlooks and catalysts for all stocks in our coverage universe."
Baker Hughes (NYSE: BHI): OW-rated, PT raised from $83 to $93
Bristow Group (NYSE: BRS): EW-rated, PT raised from $50 to $52
Cameron International (NYSE: CAM): OW-rated, PT raised from $69 to $77
Chart Industries (Nasdaq: GTLS): OW-rated, PT raised from $66 to $86
Core Laboratories (NYSE: CLB): OW-rated, PT raised from $109 to $121
Dresser-Rand (NYSE: DRC): OW-rated, PT raised from $60 to $74
Dril-Quip (NYSE: DRQ): OW-rated, PT raised from $68 to $85
Ensco plc (NYSE: ESV): OW-rated, PT raised from $61 to $64
Exterran Holdings (NYSE: EXH): EW-rated, PT raised from $16 to $17
FMC Technologies (NYSE: FTI): EW-rated, PT raised from $45 to $52
GulfMark Offshore (NYSE: GLF): OW-rated, PT raised from $54 to $70
Halliburton (NYSE: HAL): OW-rated, PT raised from $60 to $67
Helmerich & Payne (NYSE: HP): EW-rated, PT raised from $61 to $68
Hercules Offshore (Nasdaq: HERO): UW-rated, PT raised from $3 to $4
Hornbeck Offshore Services (NYSE: HOS): OW-rated, PT raised from $41 to $55
ION Geophysical (NYSE: IO): OW-rated, PT raised from $11 to $12
Nabors Industries (NYSE: NBR): EW-rated, PT raised from $23 to $26
National Oilwell Varco (NYSE: NOV): OW-rated, PT raised $105 to $128
Noble Corp. (NYSE: NE): OW-rated, PT raised $48 to $51
Oceaneering International (NYSE: OII): OW-rated, PT raised $50 to $56
Rowan Companies (NYSE: RDC): OW-rated, PT raised $47 to $49
Schlumberger Ltd. (NYSE: SLB): OW-rated, PT raised from $98 to $112
Seadrill Limited (Nasdaq: SDRL): OW-rated, PT raised from $43 to $47
Superior Energy Services (NYSE: SPN): OW-rated, PT raised $42 to $48
Tenaris S.A. (NYSE: TS): OW-rated, PT raised $52 to $58
Tetra Technologies (NYSE: TTI): EW-rated, PT raised from $14 to $16
Thermon Group (NYSE: THR): OW-rated, PT raised from $17 to $20.
Tidewater (NYSE: TDW): OW-rated, PT raised from $54 to $73
Transocean Ltd. (NYSE: RIG): OW-rated; PT raised from $64 to $72
Weatherford International (NYSE: WFT): OW-rated, PT raised from $24 to $30
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Analyst, James C. West, said, "The Mega-Cycle is Taking Hold: The next mega cycle for the oil services industry is getting underway. The European debt situation, concerns of a hard landing in China, and the resulting volatility, and depressed valuations in global equity markets are masking this fact. We believe the reason to own oil services stocks is clear: the world is becoming increasingly short energy, hydrocarbon prices are at attractive levels for investment and are likely to rise further, cash flow and thus CAPEX on energy investments are increasing rapidly, and the oil services companies are the bottleneck and likely to capture the economic benefit of this unfolding trend. We remain bullish on the oil services, equipment and drilling companies and we believe the group will significantly outperform the broader equity market over the next several years."
"Raising Price Targets Across the Board: We are rolling our price target derivations to 2013 earnings/EBITDA and raising our price targets for the oil services, equipment and drilling stocks across the board. The average upside to our price targets is 58%. The most attractive stocks are the large-cap diversified companies (BHI, HAL, SLB and WFT) with an average upside of 101%, the capital equipment names (CAM and NOV) with an average upside of 59% (ex-FTI and DRQ), several of the offshore drillers (RIG, RDC, NE and ESV), and select smid caps such as HOS, GLF, SPN, DRC, GGS and IO. We also think the small- and mid-cap NAM-focused stocks are attractive, especially with most trading below 5x EV/EBITDA on 2012. With this report we are upgrading PTEN to 1-OW (from 2-EW) and lowering DO to 3-UW. Inside the report we have company-specific outlooks and catalysts for all stocks in our coverage universe."
Baker Hughes (NYSE: BHI): OW-rated, PT raised from $83 to $93
Bristow Group (NYSE: BRS): EW-rated, PT raised from $50 to $52
Cameron International (NYSE: CAM): OW-rated, PT raised from $69 to $77
Chart Industries (Nasdaq: GTLS): OW-rated, PT raised from $66 to $86
Core Laboratories (NYSE: CLB): OW-rated, PT raised from $109 to $121
Dresser-Rand (NYSE: DRC): OW-rated, PT raised from $60 to $74
Dril-Quip (NYSE: DRQ): OW-rated, PT raised from $68 to $85
Ensco plc (NYSE: ESV): OW-rated, PT raised from $61 to $64
Exterran Holdings (NYSE: EXH): EW-rated, PT raised from $16 to $17
FMC Technologies (NYSE: FTI): EW-rated, PT raised from $45 to $52
GulfMark Offshore (NYSE: GLF): OW-rated, PT raised from $54 to $70
Halliburton (NYSE: HAL): OW-rated, PT raised from $60 to $67
Helmerich & Payne (NYSE: HP): EW-rated, PT raised from $61 to $68
Hercules Offshore (Nasdaq: HERO): UW-rated, PT raised from $3 to $4
Hornbeck Offshore Services (NYSE: HOS): OW-rated, PT raised from $41 to $55
ION Geophysical (NYSE: IO): OW-rated, PT raised from $11 to $12
Nabors Industries (NYSE: NBR): EW-rated, PT raised from $23 to $26
National Oilwell Varco (NYSE: NOV): OW-rated, PT raised $105 to $128
Noble Corp. (NYSE: NE): OW-rated, PT raised $48 to $51
Oceaneering International (NYSE: OII): OW-rated, PT raised $50 to $56
Rowan Companies (NYSE: RDC): OW-rated, PT raised $47 to $49
Schlumberger Ltd. (NYSE: SLB): OW-rated, PT raised from $98 to $112
Seadrill Limited (Nasdaq: SDRL): OW-rated, PT raised from $43 to $47
Superior Energy Services (NYSE: SPN): OW-rated, PT raised $42 to $48
Tenaris S.A. (NYSE: TS): OW-rated, PT raised $52 to $58
Tetra Technologies (NYSE: TTI): EW-rated, PT raised from $14 to $16
Thermon Group (NYSE: THR): OW-rated, PT raised from $17 to $20.
Tidewater (NYSE: TDW): OW-rated, PT raised from $54 to $73
Transocean Ltd. (NYSE: RIG): OW-rated; PT raised from $64 to $72
Weatherford International (NYSE: WFT): OW-rated, PT raised from $24 to $30
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