Oilservice tema. Most mar Goldman is optimista.
March 11, 2019 11:29 a.m. ET
" Goldman Sachs’ Angie Sedita initiated coverage of a number of oilfield-services stocks Monday, writing that valuations are at the low end of their historical range, while free cash flow remains strong. Baker Hughes , a GE Company (BHGE) is now on the firm’s Conviction Buy list, while her other Buy-rated names include Halliburton (HAL), Schlumberger (SLB), Transocean (RIG) , TechnipFMC (FTI), Nine Energy Service (NINE) and ProPetro Holding (PUMP).
Diamond Offshore (DO) and RPC (RES) are her only Sell calls, given higher valuation and some company-specific issues.
.
Looking Ahead. Sedita believes that the group can deliver a bottom-line compound annual growth rate of 15% to 30% this year through 2021, with increasing international spending benefitting companies with overseas and offshore exposure, a multiyear opportunity as these two markets slowly recover from their previous slump. In addition, fracking activity in the U.S. is picking up, while liquid-natural-gas projects are also blossoming. Longer term, she writes that U.S. shale will see smaller efficiency gains, which will weigh on production and require companies to invest more in services and equipment to keep pace. In addition, she believes that half a decade of “under-investment in the global energy markets should lead to declines in non-OPEC, non-U.S. production, potentially by 2021-2022.”
March 11, 2019 11:29 a.m. ET
" Goldman Sachs’ Angie Sedita initiated coverage of a number of oilfield-services stocks Monday, writing that valuations are at the low end of their historical range, while free cash flow remains strong. Baker Hughes , a GE Company (BHGE) is now on the firm’s Conviction Buy list, while her other Buy-rated names include Halliburton (HAL), Schlumberger (SLB), Transocean (RIG) , TechnipFMC (FTI), Nine Energy Service (NINE) and ProPetro Holding (PUMP).
Diamond Offshore (DO) and RPC (RES) are her only Sell calls, given higher valuation and some company-specific issues.
.
Looking Ahead. Sedita believes that the group can deliver a bottom-line compound annual growth rate of 15% to 30% this year through 2021, with increasing international spending benefitting companies with overseas and offshore exposure, a multiyear opportunity as these two markets slowly recover from their previous slump. In addition, fracking activity in the U.S. is picking up, while liquid-natural-gas projects are also blossoming. Longer term, she writes that U.S. shale will see smaller efficiency gains, which will weigh on production and require companies to invest more in services and equipment to keep pace. In addition, she believes that half a decade of “under-investment in the global energy markets should lead to declines in non-OPEC, non-U.S. production, potentially by 2021-2022.”
Financial Forecasts
cimu topic folytatasa. Minden fenti temaba vago hozzaszolast szivesen latunk.