Recessionary Fears Hit Oilfield Service Companies

This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Canaccord Genuity energy analyst Scott Burke made an across the board reduction in price targets for the oilfield services companies he covers. The price target reductions were predicated on “recessionary scenarios.”

“Further sustained declines in oil prices would put our current earnings estimates at risk, especially for North American land focused providers. We are reducing our target prices and considering a recessionary downside scenario for our covered service companies.”

Recessionary price targets are as follows:

-Baker Hughes Inc. (BHI) target to $59 from $90
-Halliburton Co. (HAL) to $46 from $67
-Schlumberger Ltd. (SLB) to $73 from $104
-Weatherford International Ltd. (WFT) to $18 from $29
-Basic Energy Services (BAS) to $28 from $47
-Complete Production Services (CPX) to $33 from $45
-Key Energy (KEG) to $15 from $25
-RPC Inc. (RES) to $24 from $30
-Atwood Oceanics Inc. (ATW) to $59 from $57 (note: Price Target Raised)
-Diamond Offshore Drilling Inc. (DO) to $66 from $82
-Ensco International plc (ESV) to $68 from $82
-Noble Corp. (NE) to $40 from $55
-Transocean Ltd. (RIG) to $64 from $69

Mr. Burk added, “If the world is beginning a recession, we would expect oil prices to have downside to the $50-60/bbl range.”

More Posts

5 Special Situation Stocks for Growth & Income

This article was written with Louis Navellier, founder and chief investment officer of asset manager Navellier & Associates. It was part of a series of articles developed under an agreement with Kiplinger negotiated by me to designate Mr. Navellier as a contributor and to deliver original articles for them on a regular basis.

Read More »

More RIA Consolidation Ahead

This is an editorial I wrote for Advisor Perspectives concerning the increasingly prominent role private equity capital plays in the RIA M&A landscape which was highlighted in a 2023 M&A conference held by Gladstone Associates.

Read More »
Scroll to Top