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

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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 three of the four companies to deliver positive returns in the next 12 months.

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Halliburton has the most “buy” recommendations

As of March 5, 2018, ~89% of the Wall Street analysts tracking Halliburton (HAL) recommended a “buy” or some equivalent, ~11% of the analysts recommended a “hold,” and none of the sell-side analysts recommended a “sell” or some equivalent. Analysts’ consensus target price for Halliburton was $63.6 on March 5. Currently, Halliburton is trading near $46, which implies 38% returns in the next 12 months. Halliburton is one of the sell-side analysts’ top picks in the OFS industry.

Schlumberger and Baker Hughes

Approximately 76% of the analysts tracking Schlumberger (SLB) recommended a “buy” or some equivalent, ~21% of the analysts recommended a “hold,” and only 3% of the sell-side analysts recommended a “sell.” Analysts’ consensus target price for Schlumberger was $82.3 on March 5. Currently, Schlumberger is trading at $66.6, which implies 23.6% returns in the next 12 months.

Approximately 39% of the analysts tracking Baker Hughes, a GE company (BHGE), recommended a “buy” or some equivalent, ~61% of the analysts recommended a “hold,” and none of the analysts recommended a “sell.” Analysts’ consensus target price for Baker Hughes was $36.4 on March 5. Currently, Baker Hughes is trading near $28.6, which implies 27.5% returns in 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 5. Currently, National Oilwell Varco is trading near $36.7, which implies ~1% downside in the next 12 months. National Oilwell Varco accounts for 6.5% of the iShares US Oil Equipment & Services (IEZ). IEZ declined 24% in the past year—compared to a 9% fall in National Oilwell Varco’s stock price during the same period.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.

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