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Wall Street Analysts’ Targets for SLB, HAL, NOV, and BHI

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Analysts’ recommendations

In this article, we’ll look at Wall Street analysts’ targets for our selected oilfield equipment and services (or OFS) stocks. 

Analysts expect all four of the companies under review in this series to deliver positive returns over the next 12 months.

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Why Halliburton has the most “buy” recommendations

Approximately 92% of the analysts tracking Halliburton (HAL) have recommended “buys” on the stock. Approximately 5% have recommended “holds,” and the rest have recommended “sells.”

Analysts’ consensus target price for HAL is ~$62.3. HAL is currently trading near $45.3, implying a ~38% return potential over the next 12 months. Halliburton, freed from Baker Hughes’s dead-weight merger, is one of analysts’ top picks in the OFS industry.

For more information, read Market Realist’s FMC Technologies and Technip to Form Energy Services Giant. The energy sector makes up 6.3% of SPX-INDEX, which has risen 13% in the past year, compared to the 8% rise in HAL’s stock price.

Recommendations for Schlumberger and Baker Hughes

Approximately 80% of analysts tracking Schlumberger (SLB) have recommended “buys” on the stock. Approximately 20% have recommended “holds,” and the rest have recommended “sells.” Analysts’ consensus target price for SLB is ~$91. SLB is currently trading at $71.5, implying a ~27% return potential over the next 12 months.

Approximately 53% of analysts tracking Baker Hughes (BHI) have recommended “buys” on the stock. Approximately 47% have recommended “holds,” and the rest have recommended “sells.” Analysts’ consensus target price for BHI is $66.7. BHI is currently trading near $59.6, implying a ~12% return potential over the next 12 months.

GE’s (GE) pending partnership could transform BHI’s future. Read about the transaction in detail in Market Realist’s Can the BHI–GE Partnership Benefit from Global Growth?

Why analysts are skeptical about National Oilwell Varco

Only ~17% of analysts tracking National Oilwell Varco (NOV) have recommended “buys” on the stock, and 74% have recommended “holds.” Approximately 9% of analysts have called NOV a “sell.”

Analysts’ consensus target price for NOV is near $38.5. NOV is currently trading near $33.7, implying a 14.4% potential upside over the next 12 months. NOV makes up 5.3% of the iShares US Oil Equipment & Services (IEZ).

Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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