Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

Credit Suisse Upgrades 3 Names In Oilfield Services & Equipment, Downgrades 6

Share:
Credit Suisse Upgrades 3 Names In Oilfield Services & Equipment, Downgrades 6

In light of an improving oil market, Credit Suisse has updated its outlook for the oilfield services space. The firm still believes stock picking is critical for now and has upgraded three names and downgraded six others.

Credit Suisse is now calling for U.S. production to grow from 10.3 mmbopd in 2016 to 12.7 mmbopd in 2018. In addition, the firm estimates an average U.S. rig count of 470 in 2016, 600 in 2017 and 718 in 2018.

Newpark Resources Inc (NYSE: NR) was raised from Neutral to Outperform. The firm credits Newpark with several key international fluids wins.

Tetra Technologies, Inc. (NYSE: TTI) was raised from Neutral to Outperform. The firm likes Tetra’s exposure to the North American land market and its differentiated technologies.

Hi-Crush Partners LP (NYSE: HCLP) was raised from Neutral to Outperform. The firm likes its 100 percent exposure to the U.S. unconventional market and its low cost production.

Nabors Industries Ltd. (NYSE: NBR), Superior Energy Services, Inc. (NYSE: SPN) and Forum Energy Technologies Inc (NYSE: FET) were all downgraded from Outperform to Neutral.

Precision Drilling Corp (USA) (NYSE: PDS), Helmerich & Payne, Inc. (NYSE: HP) and Patterson-UTI Energy, Inc. (NASDAQ: PTEN) were all lowered from Neutral to Under-perform.

“The onshore land market looks to be over-supplied and somewhat significantly for the foreseeable future with enough competition even for Tier 1 rigs that any significant dayrate improvement should not be expected,” analyst James Wicklund concludes.

Wicklund sees Nabors as the cheapest of the group but still believes that the stock has little upside from its current level.

In the large cap space, Credit Suisse maintains Outperform ratings on Schlumberger Limited. (NYSE: SLB), Halliburton Company (NYSE: HAL), Baker Hughes Incorporated (NYSE: BHI) and Weatherford International PLC (NYSE: WFT). 

The firm has an Under-perform rating on National-Oilwell Varco, Inc. (NYSE: NOV).

Disclosure: the author is long SLB, HAL and BHI.

Latest Ratings for BHI

DateFirmActionFromTo
Jun 2017DowngradesBuyNeutral
Apr 2017DowngradesOutperformMarket Perform
Apr 2017Initiates Coverage OnHold

View More Analyst Ratings for BHI
View the Latest Analyst Ratings

Posted-In: Analyst Color Upgrades Downgrades Analyst Ratings Best of Benzinga

 

Related Articles (BHI + FET)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NTAPMaintains74.0
ROKUMaintains110.0
VMWMaintains235.0
TGTMaintains80.0
REGNMaintains340.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

'Yen'-sanity: Markets Swoon At The Open After Japanese Currency Soars

UnitedHealthcare Pulling Out Of Illinois As ACA's Plans Costs Are Too High