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Analysts’ Targets for OFS Stocks with the Best and Worst Returns

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Analysts’ recommendations

In this part, we’ll look at Wall Street analysts’ targets for the best and worst OFS (oilfield services and equipment) stocks from our select group of companies. We screened the stocks based on stock price returns in 1Q17.

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Analysts’ target for Flotek Industries

Flotek Industries (FTK) ranks first among our list of OFS companies in terms of stock price returns in 1Q17. All of the sell-side analysts tracking Flotek Industries recommended a “buy” or some equivalent, according to data compiled by Reuters. Analysts’ consensus target price for Flotek Industries is $18.3. Currently, Flotek Industries is trading near $12.8. It implies 43% returns over the next 12 months.

Weatherford International and CARBO Ceramics 

Weatherford International (WFT) posted the second-highest returns in our select set of OFS companies. It’s important to note that 77% of the sell-side analysts tracking Weatherford International recommended a “buy” or some equivalent. Analysts’ consensus target price for Weatherford International is $7.46. Currently, the company is trading near $6.65. It implies ~12% returns over the next 12 months. To learn more, read What Oilfield Services Companies’ Forward Multiples Indicate.

Approximately 10% of the analysts recommend a “buy” for CARBO Ceramics (CRR), while 80% recommended a “hold.” Analysts’ consensus target price for CARBO Ceramics is $13.4. Currently, the company is trading near $13. It implies ~2.7% returns over the next 12 months.

Analysts’ recommendations for Fairmount Santrol

Approximately 93% of the analysts tracking Fairmount Santrol Holdings (FMSA) recommended a “buy” or some equivalent. Analysts’ consensus target price for Fairmount Santrol is $12.1. Currently, the company is trading near $7.3. It implies ~66% returns. Despite falling prices in the past three months, analysts expect strong returns from Fairmount Santrol over the next 12 months. Fairmount Santrol accounts for 3.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES).

To learn more, read The Oilfield Equipment and Services Industry: A Primer.

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