Morgan Stanley analyst Connor Lynagh initiated Oil States with an Equal Weight rating and a price target of $35 as part of his broader research note on Oil Services Drilling/Equipment industry. The analyst says the company's portfolio of Completion Services and Downhole Technologies businesses that are "heavily levered" to the North America onshore completions will drag down earnings because of the activity and possibly pricing headwinds from the "Permian pause". Longer term, Lynagh is positive on Oil States' product offerings used in offshore infrastructure, where activity should accelerate in 2019-20.