ESV rated "Strong Buy" - we may see even $ 60!
ING Barings bullish on oil service
Analyst launches coverage of 16 stocks
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 10:53 AM ET Sep 8, 2000 NewsWatch
Latest headlines
HOUSTON (CBS.MW) - ING Barings on Friday initiated coverage of 12 oil service companies, recommending the majority of the companies as "strong buy" on the prediction of continued growth in profit.
But in trading Friday, investors took profits from the group, sending the Oil Service Index (OSX: news, msgs) lower by 2.5 percent.
Barings analyst Matthew Conlan assigned "strong buy" ratings to Transocean Sedco Forex (RIG: news, msgs), Nabors Industries (NBR: news, msgs), Ensco International (ESV: news, msgs), R&B Falcon (FLC: news, msgs), which is merging with Transocean, Rowan Cos. (RDC: news, msgs), Patterson Energy (PTEN: news, msgs), Grey Wolf (GW: news, msgs), UTI Energy (UTI: news, msgs), Super Energy Services (SESI: news, msgs), Unit Corp. (UNT: news, msgs), and Parker Drilling (PKD: news, msgs).
All of the contract drillers rated by Barings were trading lower Friday.
Conlan assigned "buy" ratings to Noble Drilling (NE: news, msgs), Global Marine (GLM: news, msgs), and Santa Fe International (SDC: news, msgs). He rated Marine Drilling (MRL: news, msgs) a "hold."
"Due primarily to the unpredictable nature of commodity prices, contract drilling stocks are very risky," Conlan warned in his report. "A sudden downward correction of oil and/or natural gas prices could materially decrease aggregate drilling demand, materially affecting...profitability." |
