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What Are Analysts’ Targets for Worst Oilfield Services Companies?

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Analysts’ recommendations

In this article, we will look at Wall Street analysts’ targets for the worst OFS (oilfield services and equipment) stocks from our select set. We screened these stocks based on the lowest expected revenue, earnings before interest, tax, depreciation, and amortization, and net earnings per share growth in 3Q16, as estimated by Wall Street analysts.

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Analysts’ target for Oil States International

Oil States International (OIS) ranks the lowest among our list of OFS companies in terms of earnings growth. Approximately 39% of analysts tracking Oil States International recommended a “buy” or equivalent. Approximately 56% recommend a “hold” and the remaining analysts recommended a “sell.” Analysts’ consensus target price for Oil States International is $34.7. Currently, the company is trading near $28. This implies a 22% return over the next 12 months.

Forum Energy Technologies and Nabors Industries

Forum Energy Technologies (FET) is expected to post the second-lowest earnings growth among our select set of OFS companies. Approximately 53% of the analysts tracking Forum Energy Technologies recommended a “buy” or equivalent. Approximately 39% recommended a “hold,” and the remaining analysts recommended a “sell.” Analysts’ consensus target price for Forum Energy Technologies is $19.6. Currently, the company is trading near $18.5. This implies a 6% return over the next 12 months.

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Wall Street analysts expect Nabors Industries (NBR) to post the lowest revenue growth in 3Q16—compared to 2Q16. Approximately 61% of the analysts recommended a “buy” for Nabors Industries, while 39% recommended a “sell.” Analysts’ consensus target price for Nabors Industries is $12.4. Currently, the company is trading near $10.4. This implies an 18.5% return over the next 12 months. Nabors Industries accounts for 0.20% of the iShares Core S&P Mid-Cap ETF (IJH).

Oceaneering International

Approximately 32% of analysts tracking Oceaneering International (OII) recommended a “buy” or equivalent. Approximately 59% recommended a “hold” and the remaining analysts recommended a “sell.” Analysts’ consensus target price for Oceaneering International is near $32. Currently, the company is trading near $25.6. This implies an ~25% upside return over the next 12 months.

Next, we’ll discuss the top oilfield services companies’ returns compared to the industry indicators.

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