Guggenheim analyst Michael La Motte has become bullish on the oil services sector for the first time in nearly two years due to expectations the global oil market will begin to tighten in 2016 and could reach $100/bbl by 2018, stocks are out of favor and have a lot of upside from sentiment getting less negative, and earnings will bottom in first half 2016.

BofA lowered the firm's price target on Core Laboratories to $16 from $17 and keeps an Underperform rating on the shares. Oilfield services' year-to-date strength hides cross currents in upstream capex, but the firm thinks Saudi's about face on its oil MSC expansion has minimal impact on 2024-25 D&C spending and thinks that peak international spending concerns are "overblown," the analyst tells investors in a research Q1 preview for the oilfield services group. However, Core Laboratories' price target change is due to lower 2024-26 estimates, the analyst noted.