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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