Analysts’ recommendations

In this final part of the series, we’ll look at Wall Street’s targets for the OFS (oilfield equipment and services) stocks that are expected to record the highest revenue growth in the second quarter. Analysts expect four of the five companies to deliver positive returns over the next 12 months.

None of the sell-side analysts tracking Carbo Ceramics (CRR) have recommended a “buy” or equivalent as of June 12, as surveyed by Reuters. All sell-side analysts recommended a “hold” for CRR. Based on its current price, analysts’ mean target price of $8.40 for CRR translates to a -6% expected return over the next 12 months.

Analysts’ Targets for Highest Expected Oilfield Stocks

HLX’s “buy” recommendation

Approximately 89% of the Wall Street analysts tracking Helix Energy Solutions Group (HLX) have recommended a “buy” or equivalent as of June 12. None of them have recommended a “hold,” and 11% have recommended a “sell” or equivalent. Analysts’ consensus target price for HLX was ~$8.40 as of June 12. HLX is currently trading near ~$7.60, which implies 15% returns over the next 12 months.

Recommendations for SLCA, MDR, and OIS

Approximately 83% of the Wall Street analysts tracking U.S. Silica Holdings (SLCA) have recommended a “buy” as of June 12. About 13% of them have recommended a “hold,” and 4% have recommended a “sell.” Analysts’ consensus target price for SLCA was ~$36.50 as of June 12. SLCA is currently trading near $29.80, which implies a ~23% return over the next 12 months.

Approximately 55% of the analysts tracking McDermott International (MDR) have recommended a “buy” or equivalent. About 45% have recommended a “hold,” and none have recommended a “sell.” Analysts’ consensus target price for MDR was ~$20.60 as of June 12. MDR is currently trading near $30, which implies a ~41% return over the next 12 months.

Approximately 24% of the analysts tracking Oil States International (OIS) have recommended a “buy” or equivalent. About 71% of them have recommended a “hold,” and 5% have recommended a “sell.” Analysts’ consensus target price for OIS was ~$34.10 as of June 12. OIS is currently trading near $33, which implies a ~3% return over the next 12 months.

You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer. Also read Market Realist’s Ranking the 5 Worst OFS Companies by Market Returns in 2018.

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