Most oil services stocks have surged in recent months as WTI crude oil prices have pushed as high as $46/bbl following February’s lows around $26/bbl. But should shareholders of the three largest oil services companies in the world, Schlumberger (SLB), Halliburton (HAL) andBaker Hughes (BHI) be taking profits or holding out for more gains?
Goldman Sachs recently updated its outlook for these three stocks. Here’s a look at what the firm had to say about each.
Schlumberger (SLB)
Of the three big oil services players, Goldman is most bullish on “Buy”-rated SLB. Analyst Waqar Syed writes that SLB’s advantages in technical expertise and diversity can be difficult to quantify sometimes, but they should not be discounted from an investment standpoint.
“We note SLB has a number of transformational initiatives in the works making it difficult to fully quantify the potential impact on revenues/costs,” Syed explains.
Goldman also believes that the Cameron International buyout will provide cost synergies and allow SLB to offer customers unique end-to-end integrated solutions.
Syed stresses the importance of data acquisition and mining in the future of the oil industry, and Goldman sees SLB as the clear market leader in that category.
Goldman has raised its price target for SLB to $94, a roughly 30% premium to today’s prices.
Halliburton (HAL)
The $3.5 billion breakup fee HAL agreed to pay BHI earlier this month certainly stings…
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