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Wall Street Analysts’ Targets for FMSA, SPN, OIS, and NOV

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Analysts’ recommendations

In this part, we’ll discuss Wall Street analysts’ targets for our select OFS (oilfield equipment and services) stocks. Analysts expect at least three of the OFS companies discussed in this series to deliver positive returns in the next 12 months.

Only two sell-side analysts track Flotek Industries (FTK), as surveyed by Reuters. Both analysts recommended a “buy” or some equivalent for Flotek Industries on March 9, 2018.

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Fairmount Santrol Holdings

Approximately 59% of the Wall Street analysts tracking Fairmount Santrol Holdings (FMSA) recommended a “buy” or some equivalent on March 9, 2018. Approximately 35% of the analysts recommended a “hold,” while 6% recommended a “sell” or some equivalent. Analysts’ consensus target price for Fairmount Santrol Holdings was $6.06 on March 9. Currently, Fairmount Santrol Holdings is trading near $4.3, which implies 40% returns over the next 12 months.

Superior Energy Services and Oil States International

Approximately 52% of analysts tracking Superior Energy Services (SPN) recommended a “buy” or some equivalent, ~48% recommended a “hold,” and none of the sell-side analysts recommended a “sell.” Analysts’ consensus target price for Superior Energy Services was $12.1 on March 9. Currently, Superior Energy Services is trading at $9.87, which implies ~23% returns over the next 12 months.

Approximately 33% of the analysts tracking Oil States International (OIS) recommended a “buy” or some equivalent, ~67% recommended a “hold,” and none of the analysts recommended a “sell.” Analysts’ consensus target price for Oil States International was $28.9 on March 9. Currently, Oil States International is trading near $26.2, which implies 10.5% returns over the next 12 months.

National Oilwell Varco

Only 27% of the analysts tracking National Oilwell Varco (NOV) recommended a “buy” or some equivalent, ~61% recommended a “hold,” and ~12% recommended a “sell.” Analysts’ consensus target price for National Oilwell Varco was $36.4 on March 9. Currently, National Oilwell Varco is trading near $37.7, which implies ~3% downside over the next 12 months. National Oilwell Varco accounts for 6.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES decreased 21% in the past year. National Oilwell Varco’s stock price didn’t change during the same period.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer and Comparing SLB, HAL, BHGE, and NOV after 2017.

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