FBR Capital Lowers Estimates and Price Targets On Oilfield Services Stocks; Downgrades BHI, NE, DO

FBR Capital lowered estimates on their coverage on Oilfield Services stocks as a result of the current six-month deepwater drilling moratorium in the U.S. Gulf of Mexico, and has downgraded Baker Hughes Incorporated (NYSE: BHI), and Noble Corp. (NYSE: NE) from Outperform to Market Perform, and Diamond Offshore Drilling Inc. (NYSE: DO) from Market Perform to Underperform.

The firm notes, "Our baseline assumption is that the deepwater drilling moratorium lasts through November and start-up delays cause drilling to resume in January, and will not be officially extended and that shallow water permitting resumes in July. There are, however, indications shallow water permitting could resume as soon as this week."

The firm cut its price target on
Baker Hughes (NYSE: BHI) from $61 to $47
Diamond Offshore (NYSE: DO) from $97 to $54
Noble Corp. (NYSE: NE) from $62 to $36.
Halliburton (NYSE: HAL) from $44 to $38
Schlumberger (NYSE: SLB) from $96 to $85
Weatherford (NYSE: WFT) from $27 to $23
Nabors Industries (NYSE: NBR) from $24 to $23
FMC Technologies (NYSE: FTI) from $77 to $68
TESCO Corp (Nasdaq: TESO) from $18 to $17

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