Canaccord Genuity on Energy - Oilfield Services: Recession Stress Test, Reducing Targets
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Price: $57.68 --0%
Rating Summary:
15 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
15 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Canaccord Genuity on Energy - Oilfield Services: Recession Stress Test, Reducing Targets
Canaccord analyst, Scott Burk, said, "Further sustained declines in oil prices would put our current earnings estimates at risk, especially for North American land focused providers. We are reducing our target prices and considering a recessionary downside scenario for our covered service companies. Our new targets are based on low-end (peak) multiples. Risk/reward favors going long the stocks unless oil prices are expected to retrace below $50/bbl for an extended period."
Baker Hughes (NYSE: BHI)(Hold) target to $59 from $90; Halliburton Co. (NYSE: HAL)(Buy) to $46 from $67; Schlumberger Ltd. (NYSE: SLB)(Hold) to $73 from $104; Weatherford International Ltd. (NYSE: WFT)(Buy) to $18 from $29; Basic Energy Services (NYSE: BAS)(Buy) to $28 from $47; Complete Production Services (NYSE: CPX)(Buy) to $33 from $45; Key Energy (NYSE: KEG)(Buy) to $15 from $25; RPC Inc. (NYSE: RES)(Hold) to $24 from $30; Atwood Oceanics Inc. (NYSE: ATW)(Buy) to $59 from $57 (note: Price Target Raised); Diamond Offshore Drilling (NYSE: DO)(Hold) to $66 from $82; Ensco International plc (NYSE: ESV)(Buy) to $68 from $82; Noble Corp. (NYSE: NE)(Hold) to $40 from $55; Transocean Ltd. (NYSE: RIG)(Hold) to $64 from $69.
Canaccord analyst, Scott Burk, said, "Further sustained declines in oil prices would put our current earnings estimates at risk, especially for North American land focused providers. We are reducing our target prices and considering a recessionary downside scenario for our covered service companies. Our new targets are based on low-end (peak) multiples. Risk/reward favors going long the stocks unless oil prices are expected to retrace below $50/bbl for an extended period."
Baker Hughes (NYSE: BHI)(Hold) target to $59 from $90; Halliburton Co. (NYSE: HAL)(Buy) to $46 from $67; Schlumberger Ltd. (NYSE: SLB)(Hold) to $73 from $104; Weatherford International Ltd. (NYSE: WFT)(Buy) to $18 from $29; Basic Energy Services (NYSE: BAS)(Buy) to $28 from $47; Complete Production Services (NYSE: CPX)(Buy) to $33 from $45; Key Energy (NYSE: KEG)(Buy) to $15 from $25; RPC Inc. (NYSE: RES)(Hold) to $24 from $30; Atwood Oceanics Inc. (NYSE: ATW)(Buy) to $59 from $57 (note: Price Target Raised); Diamond Offshore Drilling (NYSE: DO)(Hold) to $66 from $82; Ensco International plc (NYSE: ESV)(Buy) to $68 from $82; Noble Corp. (NYSE: NE)(Hold) to $40 from $55; Transocean Ltd. (NYSE: RIG)(Hold) to $64 from $69.
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