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Fly News Breaks for January 13, 2020
Jan 13, 2020 | 17:05 EDT
Bernstein analyst Nicholas Green initiated coverage on the Global Oil Services sector in a note titled 'Houston, we have a problem.' The analyst said that investors need oil services stocks in their portfolios, as there is a lot of opportunity through the fog. However, he sees a double-dip recession for oil services ahead, "dismal" prospects for margin recovery, and called sector valuation "a mixed bag." Given that, Green said there are few fundamental equity cases for owning oil service names, but added that lots of money can be made with these highly liquid and highly volatile stocks. The analyst recommended buying Tenaris (TS), which he rated an Outperform and believes is "leagues ahead of anybody else," and selling out of U.S. large-caps Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BKR), all of which he rated Underperform. He also advised selling out of TechnipFMC (FTI), which he downgraded to Underperform from Market Perform, and buying the underappreciated E&C firm Saipem (SAPMY), which he rated Outperform. Additionally, Green said "everyone should own some" SBM Offshore (SBFFF), which he called "the key winner from Exxon's (XOM) Guyana fields," and upgraded to Outperform from Market Perform.
News For TS;SLB;HAL;BKR;FTI;SAPMY;SBFFF From the Last 2 Days
Jan 25, 2021 | 17:49 EST
Goldman Sachs analyst Sahar Islam downgraded Tenaris to Neutral from Buy with a $14.50 price target. Islam states that Tenaris should continue to generate cash from working capital releases and maintain the strongest balance sheet within his coverage, but he also expects revenue growth to be limited in the first half of the year and a faster recovery in the U.S. land rig count would be needed before he could turn more positive on the name. After an 18% run-up in Tenaris stock price over the past 6months, Islam says shares now reflect the U.S. onshore recovery.
Jan 25, 2021 | 09:52 EST
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Wells Fargo (WFC) upgraded to Outperform from Neutral at Credit Suisse with analyst Susan Roth Katzke saying the company with its Q4 results offered both targets and disclosure to increase clarity on the path to improved returns. 2. Salesforce (CRM) upgraded to Hold from Sell at Loop Capital with analyst Yun Kim saying the company's FY22 estimates of 17% organic revenue growth estimates vs. its previous 20% growth target have been "de-risked", and the recent checks suggest a "modest rebound" in its core business driven by increasing mid-sized deal activity. 3. Schlumberger (SLB) upgraded to Buy from Neutral at BofA with analyst Chase Mulvehill pointing to the rotation away from North American and into international energy names due to the growing uncertainty around the future of U.S. Oil and Gas regulatory environment under the Biden administration. 4. Regeneron (REGN) upgraded to Outperform from Market Perform at BMO Capital with analyst Matthew Luchini saying the company is "well positioned" heading into 2021 with potential for continued strong performance from Eylea, Dupixent and Libtayo and the ongoing Dupixent label expansion efforts and a combination-focused oncology pipeline providing additional growth opportunities. 5. ArcelorMittal (MT) upgraded to Overweight from Neutral at JPMorgan with analyst Luke Nelson saying the outlook for global steel equities has "markedly improved" after a "shaky" first half 2020 and "alpha can still be generated with stock selection" within the steel sector, Nelson tells investors in a research note. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Jan 25, 2021 | 05:20 EST
Atlantic Equities analyst Barry MacCarthy upgraded Halliburton to Overweight from Neutral with a $23 price target.