Oil States upgraded at SunTrust on outlook for upcoming projects

|About: Oil States International Inc. (OIS)|By:, SA News Editor

Oil States International (OIS +1.3%) is higher as SunTrust upgrades shares to Buy from Hold with a $35 price target, saying the company’s outlook is set to improve with deepwater projects that have been in planning for years will reach final investment decisions in 2019-20, driving "growth in backlog, revenues and margins for its offshore products business."

OIS's plans to lower costs, accelerate product introductions and improve synergies with recently acquired Falcon Flowback and Geodynamics should improve operating results and generate higher incremental margins, says SunTrust's Ken Gill.

The firm expects a combination of larger pads, larger wells and the elimination of takeaway capacity constraints to drive acceleration in E&P completion activity in 2019.

Subscribe for full text news in your inbox