24 Nov

Wall Street Targets for the Worst-Performing Oilfield Stocks

WRITTEN BY Alex Chamberlin

Analysts’ recommendations

In this article, we’ll look at Wall Street analysts’ targets for the oilfield equipment and services (or OFS) stocks that have given the worst returns year-to-date. Analysts expect all five companies to deliver positive returns over the next 12 months.Wall Street Targets for the Worst-Performing Oilfield Stocks

FTK has the highest “buy” recommendations

All the Wall Street analysts tracking Flotek Industries (FTK) recommended a “buy” or equivalent on November 20. None recommend a “hold” or “sell” or equivalent. Analysts’ consensus target price for FTK was ~$6.0 on November 20. FTK is currently trading near $4.8, which implies 25% returns over the next 12 months at the current price.

Recommendations for KEG, NBR, FMSA, and TESO

Approximately 60% of the Wall Street analysts tracking Key Energy Services (KEG) recommended a “buy” on November 20. Approximately 40% of sell-side analysts tracking Key Energy Services recommended a “hold” and none recommended a “sell.” Analysts’ consensus target price for KEG was ~$11.8 on November 20. KEG is currently trading at $10.3, which implies ~15% returns over the next 12 months at the current price.

Approximately 70% of analysts tracking Nabors Industries (NBR) have recommended a “buy” or equivalent. Approximately 30% recommend a “hold” and none recommended a “sell.” Analysts’ consensus target price for NBR was ~$8.7 on November 20. NBR is currently trading near $5.8, which implies ~49% returns over the next 12 months at the current price.

Approximately 59% of analysts tracking Fairmount Santrol Holdings (FMSA) have recommended a “buy” or equivalent. Approximately 35% recommend a “hold” and the rest recommended a “sell.” Analysts’ consensus target price for FMSA was ~$5.4 on November 20. FMSA is currently trading near $5.3, which implies ~3% returns over the next 12 months at the current price.

Only ~33% of sell-side analysts tracking Tesco Corporation (TESO) recommended a “buy” or equivalent and ~67% have recommended a “hold.” None of the sell-side analysts have rated TESO a “sell.” Analysts’ consensus target price for TESO was near $5.7 on November 20. TESO is currently trading near $3.9, which implies ~45% upside over the next 12 months at the current price. TESO makes up 0.02% of the Vanguard Energy ETF (VDE). VDE has fallen 12% since December 30, 2016, compared to a 52% fall in TESO’s stock price.

Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer and Which Oilfield Service Stocks Look Attractive in 4Q17?

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