WFRD - Schlumberger other oil services stocks set to extend gains Piper Sandler says

Oilfield services stocks have been major beneficiaries of rising crude oil prices, and Piper Sandler upgraded Schlumberger (NYSE:SLB) on Monday to Overweight from Neutral with a $55 price target as part of a larger re-rating of the industry. The shortages of rigs and other supplies today are "emblematic of the broader industry scar tissue and atrophy that have resulted from being brutally over-downsized for several years ahead of the present energy supply crunch," Piper's Ian Macpherson wrote, as reported by Barron's. Piper Sandler predicts oil prices will stay at ~$100/bl through 2023, and with increasing demand for rigs and too few of them available, oil services companies (OIH) should have strong pricing power, Macpherson said. The analyst's top picks in the group are Tenaris (TS), TechnipFMC (FTI) and Weatherford (WFRD), which he believes could rise by 75% on average, while he also upgraded ChampionX (CHX) to Overweight from Neutral with a

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Schlumberger, other oil services stocks set to extend gains, Piper Sandler says