Upside potential

Based on median target prices from analysts surveyed by Reuters, Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHGE), and TechnipFMC (FTI) have an upside potential of 27%, 36%, 14%, and 23%, respectively. On September 13, Macquarie cut its target price for Halliburton from $45 to $43. On September 11, Stifel started coverage on Halliburton with a “buy” rating. Stifel has given Halliburton a target price of $45. On the same day, Stifel started coverage on Schlumberger and gave it a “hold” rating with a target price of $69.

SLB, HAL, BHGE, and FTI: Four Oilfield Services Giants

To learn more about analysts’ target prices and ratings for the four stocks, read Analysts Are Bullish on These S&P 500 Oilfield Services Stocks.

Halliburton looks attractive

The above table compares the key metrics of the four oilfield services companies that we’re discussing in this series. Halliburton looks the most attractive in terms of upside potential, forward PE multiple, and EBITDA and revenue growth in the first half of 2018. Halliburton’s fall in 2018—the most among the peers—likely offers an attractive entry point.

TechnipFMC also looks attractive based on its valuation. However, TechnipFMC’s lower earnings and revenue growth might keep its stock under pressure. Baker Hughes and Schlumberger seem to offer stable growth with attractive upside potential from their current levels.

For the latest energy sector coverage, visit Market Realist’s Energy and Power Research page.

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