Capital One Getting Nervous About Oilfield Service Stocks (SLB, HAL, BJS, NE, more)

Analysts at Capital One Southcoast downgraded a slew of stocks involved in the Oilfield Services industry this morning, citing a concerning '09 outlook.

The firm lowered its ratings on these stocks from Add to Neutral:

• Ensco International (NYSE: ESV) - $67 price target
  
• Rowan Companies (NYSE: RDC) - $40 price target
  
• Noble Corp. (NYSE: NE) - $60 price target
  
• Pride International (NYSE: PDE) - $34 price target
  
• BJ Services (NYSE: BJS) - $17 price target
  
• Complete Production Services (NYSE: CPX) - $17 price target
  
• Schlumberger (NYSE: SLB) - $64 price target
  
• Halliburton (NYSE: HAL) - $27 price target
  
• Mitcham Industries (Nasdaq: MIND) - $10 price target
  
• Dawson Geophysical (Nasdaq: DWSN) - $40 price target
  
• Geokinetics (NYSE: GOK) - $14 price target

Capital One sees budgets still being reduced, commodity prices remaining at depressed levels, equipment cancellations that can't come quick enough, and US land rig count that isn't dropping as fast as the firm had expected. Furthermore, the firm believes that weakness in the international jackup market has just begun and said that "with Saudi Aramco releasing rigs, we believe the worst is still yet to come..."

The firm also lowered its price target on McMoRan Exploration (NYSE: MMR) from $18 to $17, but kept the stock's investment rating at Add.

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