2023-04-18 15:32:13 ET
Core Laboratories ( NYSE: CLB ) -1.6% and NexTier Oilfield Solutions ( NYSE: NEX ) -2.8% in Tuesday's trading as Bank of America downgraded the stock to Underperform from Neutral with respective $21.50 and $8.50 price targets, reiterating its more cautious view on land-levered oilfield services stocks.
BofA sees pricing pressures resulting in meaningful downside in H2 2023 and 2024 consensus estimate for U.S.-levered oilfield services names, "so while it may feel like we are in the later innings of our negative view on U.S. oilfield markets, we do still do think it is too early to get positive on these stocks," analyst Chase Mulvehill wrote.
In the OFS sector, BofA said it continues to favor international and offshore levered stocks, with Schlumberger ( NYSE: SLB ) remaining its top pick among large caps and TechnipFMC ( FTI ) ad its small- and mid-cap favorite.
TechnipFMC ( FTI ) boasts "a strong balance sheet, attractive earnings outlook, and potential for valuation re-rating upwards as earnings inflection triggers positive momentum," Creative Capital Ideas writes in an analysis posted recently on Seeking Alpha .
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Core Labs, NexTier cut to Sell equivalent at BofA; Schlumberger tops sector