Baker Hughes, oilfield services names upgraded as Barclays says 'time to own'

May 03, 2021 12:39 PM ETBaker Hughes Company (BKR), HAL, NEX, PTEN, WHD, OIH, XES, IEZPTEN, OIH, HAL, BKR, IEZ, XES, NEX, WHDBy: Carl Surran, SA News Editor9 Comments
  • Baker Hughes (BKR +8.4%) surges to the top of today's gainers on the S&P 500 after Barclays upgrades shares to Overweight from Equal Weight with a $28 price target, part of an upgrade of the entire the oil services and equipment sector to positive from neutral.
  • Barclays believes the industry is poised to outperform over the next several years as global oil markets recover by 2023 and upstream spending continues to expand out to 2025.
  • The time to own oilfield services names is "when upstream spending is increasing and and costs are moving higher... now that spending has troughed and is on the upswing, the time to own OFS is now," analyst J. David Anderson writes.
  • The firm also upgrades Halliburton (HAL +5.4%), Nextier Oilfield Solutions (NEX +8.1%), Patterson-UTI Energy (PTEN +8.3%) and Cactus Inc. (WHD +4.1%) to Overweight from Equal Weight with higher stock PTs across the board.
  • ETFs: OIH, XES, IEZ
  • Baker Hughes boasts "one of the best energy transition narratives" in the oilfield services industry, Citi said in upgrading the stock to Buy a week ago.

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