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Credit Suisse Recommends Investments In Halliburton, Schlumberger, Baker Hughes, Weatherford International

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In a note to clients on Monday, James Wicklund of Credit Suisse explained the benefits of buying certain companies in the oil sector, despite declining oil prices.

"Due to the hyperbolic decline rates of unconventional production, U.S. supply growth will slow and the back-end of the futures curve should increase," Wicklund wrote. "Higher future prices will spur an activity recover in the mid-2015 and we would recommend investors to take advantage of an over-corrected market and allocate capital toward" Halliburton Company (NYSE: HAL), Schlumberger Limited. (NYSE: SLB), Baker Hughes Incorporated (NYSE: BHI), and Weatherford International Plc (NYSE: WFT).

Wicklund lowered high capital expenditure and activity projections for companies in the sector. As such, the analyst lowered his 2015 U.S. rig count estimate by 15 percent to 1,582. Should the back-end of the futures curve correct, the analyst projects this will spur activity at a rate that will be faster than the market is currently projecting.

Wicklund sees a bottom in oil prices occurring in the first half of 2015. While the bottom is still some time away, the analyst noted that “we are close enough” for longer-term investors to take advantage of an “over-corrected” market.

Shares of the aforementioned companies were all ticking higher in Monday's pre-market session.

Latest Ratings for HAL

DateFirmActionFromTo
Jul 2019MaintainsOverweight
Jul 2019MaintainsOutperform
Jul 2019MaintainsOverweight

View More Analyst Ratings for HAL
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Posted-In: Baker Hughes Credit Suisse halliburton James Wicklund SchlumbergerAnalyst Color Analyst Ratings Trading Ideas

 

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