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Wall Street’s Targets for SLB, HAL, KEG, NBR, and CLB

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Analysts’ recommendations

In this article, we’ll look at Wall Street’s targets for the OFS (oilfield equipment and services) stocks that had the highest net debt-to-equity ratios in the first quarter. 

Analysts expect four of the five companies to deliver positive returns over the next 12 months.

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HAL has a relatively high number of “buy” recommendations

Approximately 91% of the analysts tracking Halliburton (HAL) have recommended “buys” or equivalents on its stock as of June 1. Approximately 9% have recommended “holds,” and none have recommended “sells” or equivalents. Analysts’ consensus target price for HAL was ~$61.9 on June 1. HAL is currently trading near $49.1, implying a 26% return over the next 12 months.

Recommendations for KEG, SLB, NBR, and CLB

Approximately 80% of analysts tracking Key Energy Services (KEG) have recommended “buys” on its stock as of June 1. Approximately 20% of sell-side analysts tracking KEG have recommended “holds,” and none have recommended “sells” on its stock. Analysts’ consensus target price for KEG was ~$18.2 on June 1. KEG is currently trading at $16.1, implying a ~13% return potential over the next 12 months.

Approximately 75% of analysts tracking Schlumberger (SLB) have recommended “buys” or equivalents on its stock. Approximately 22% have recommended “holds,” and 3% have recommended “sells.” Analysts’ consensus target price for SLB was ~$80.2 on June 1. SLB is currently trading near $69, implying a ~16% return potential over the next 12 months.

Approximately 68% of sell-side analysts tracking Nabors Industries (NBR) have recommended “buys” or equivalents, and ~32% have recommended “holds” on its stock. No sell-side analysts have recommended “sells” on NBR. Analysts’ consensus target price for NBR was near $9.7 on June 1. NBR is currently trading near $7.3, implying a ~33% upside over the next 12 months.

Approximately 43% of the analysts tracking Core Laboratories (CLB) have recommended “buys” or equivalents on its stock. Approximately 57% of sell-side analysts have recommended “holds,” and none have recommended “sells.” Analysts’ consensus target price for CLB was ~$122.5 on June 1. CLB is currently trading near $124.9, implying a ~2% downside over the next 12 months at its current price.

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

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