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Analysts’ Recommendations: WFT, CRR, RES, FMSA, and SLCA

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Analysts’ recommendations

In this part, we’ll look at Wall Street analysts’ targets for the OFS (oilfield equipment and services) stocks that have given the worst returns YTD (year-to-date). The sell-side analysts expect the returns from all five of the OFS companies to be positive in the next 12 months.

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U.S. Silica Holdings has high “buy” recommendations

Approximately 90% of the Wall Street analysts tracking U.S. Silica Holdings (SLCA) recommended a “buy” or some equivalent as of March 14, 2018. Approximately 5% of the analysts recommended a “hold,” while 5% recommended a “sell” or some equivalent. Analysts’ consensus target price for U.S. Silica Holdings was ~$38.5 on March 14. U.S. Silica Holdings is trading near $26.3, which implies ~47% returns in the next 12 months at the current price.

Weatherford International and Fairmount Santrol Holdings 

Approximately 73% of the analysts tracking Weatherford International (WFT) recommended a “buy” or some equivalent, ~20% recommended a “hold,” and the rest recommended a “sell.” Analysts’ consensus target price for Weatherford International was $4.87 as of March 14, 2018. Weatherford International is trading near $2.6, which implies ~89% returns in the next 12 months at the current price. Weatherford International accounts for 2.0% of the iShares US Oil Equipment & Services ETF (IEZ).

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Approximately 59% of the sell-side analysts tracking Fairmount Santrol Holdings (FMSA) recommended a “buy” or some equivalent, ~35% recommended a “hold,” and ~6% recommended a “sell.” Analysts’ consensus target price for Fairmount Santrol Holdings was near $5.9 as of March 14. Fairmount Santrol Holdings is trading near $4.3, which implies nearly 39% returns in the next 12 months at the current price.

RPC and CARBO Ceramics

Approximately 26% of the analysts tracking RPC (RES) recommended a “buy” or some equivalent, ~70% recommended a “hold,” and the rest recommended a “sell.” Analysts’ consensus target price for RPC was $23.76 as of March 14, 2018. RPC is trading near $20.3, which implies ~16% returns in the next 12 months at the current price.

None of the sell-side analysts tracking CARBO Ceramics (CRR) recommended a “buy” or some equivalent, according to data compiled by Reuters. Approximately 100% of the analysts recommended a “hold,” while none of the analysts recommended a “sell.” Analysts’ consensus target price for CARBO Ceramics was $9.11 as of March 14, 2018. CARBO Ceramics is trading near $7.6, which implies ~19% returns in the next 12 months at the current price.

Read The Oilfield Equipment and Services Industry: A Primer and Which Oilfield Service Stocks Look Attractive in 4Q17? to learn more about the OFS industry.

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