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FINANCIALS

Halliburton Company (HAL), Nabors Industries Ltd. (NBR), Schlumberger Limited. (SLB), Baker Hughes Incorporated (BHI), Weatherford International Plc (WFT), Top Picks at RBC Capital

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RBC Capital believes Oil Field Services Company’s stock would advance further higher

RBC’s positive stance on oilfield companies came on the back of recovering crude oil prices which have soared by a hefty 80% since their lowest level back in February this year. The report highlighted that the stock index of oilfield services companies has increased 30% since January this year.

The equity research firm said that from their current lows, oilfield services stocks would go further higher. While noting its favorite stocks in the sector, the firm mentioned names such as Halliburton Company (NYSE:HAL), Nabors Industries Limited (NYSE:NBR), Schlumberger Limited. (NYSE:SLB), Baker Hughes Incorporated (NYSE:BHI), and Weatherford International plc (NYSE:WFT). The year-to-date (YTD) stock performance of oilfield services stocks has been detailed below:

YTD Stock Performance

Halliburton Company

19.39%

Schlumberger Limited

6.21%

Nabors Industries Limited

-0.41%

Weatherford International

-32.94%

Baker Hughes Incorporated

0.74%

 

 

The above table highlights that apart from Weatherford International, other stocks have also shown growth especially Halliburton and Schlumberger. Although the stock appreciation lacked fundamental improvement for the companies as oil prices remained at lower levels, the future performance is expected to improve considering recent rebound in oil prices.

Note that such capital appreciation has come despite the fact that oil prices have remained lower for most part of this year, resulting in poor demand for oilfield services as energy companies continue to cut back their capital expenditures.

Because of curtailment in capex by energy companies, the first quarter performance of oilfield services companies has also been sluggish.

The price targets analysts at the Street give these companies is mentioned below. It shows that all the stocks rated as favorites at RBC Capital have significant upside potential.

 

Current Price

Average Price Target

Halliburton Company

$40.72

$45.48

Schlumberger Limited

$74.03

$87.74

Nabors Industries Limited

$8.41

$11.44

Weatherford International

$5.56

$8.32

Baker Hughes Incorporated

$46.39

$50.68

 

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