NOV - Citi breaks down year ahead for oil service names - PTEN up to buy
With 12 buys and 2 sells, safe to say that Citi's North American Oil and Gas Services analyst is bullish on the year ahead Citi expects margin expansion for US-onshore leveraged service providers, as supply chain issues are overcome, and activity levels continue to move higher; the Analyst upgrades Patterson (NASDAQ:PTEN) to buy on the thesis Longer term, Citi sees oil prices reverting to $55, US onshore activity falling and presumably the aforementioned bullish margin thesis reversing; for now, Citi is bullish Given the $55 long-term oil price view, Citi's service analyst is also bullish offshore service providers, where NOV (NYSE:NOV) is top pick, and the investment bank sees Russia and OPEC driving profits over the medium term On Citi's price deck, the US E&P companies trade at a 16% free cash flow yield in 2022, versus the Oilfield service names at 7% With the Analyst pitching a 6-month margin
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Citi breaks down year ahead for oil service names - PTEN up to buy