Analysts at Goldman Sachs on Thursday offered some sharply bullish commentary on oilfield services providers Halliburton Company ( HAL ) and Baker Hughes Incorporated ( BHI ).
The firm initiated coverage on HAL with a "Conviction Buy" List rating and $55 price target, suggesting a massive 65% upside to the stock's Wednesday closing price of $33.40.
A Goldman analyst commented, "Through luck or shrewd planning, HAL has positioned itself extremely well to benefit from the major trends in the oil and gas upstream business."
Meanwhile, the firm started coverage on BHI with a "Buy" rating and $80 price target, suggesting a large 58% upside to the stock's Wednesday closing price of $50.72.
Goldman cited recent cost-cutting measures and higher E&P spending for the positive view, commenting that "BHI now has the most exposure to North American drilling, and should US drilling activity and pressure pumping remain strong as we expect, BHI should outperform."
Halliburton shares rose 90 cents, or 2.7%, in premarket trading Thursday, while Baker Hughes shares gained 88 cents, or +1.7%.
The Bottom Line
Shares of Halliburton ( HAL ) have a 1.08% dividend yield, based on last night's closing stock price of $33.40. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $35-$39 price levels. Shares of Baker Hughes [[BHI] have a 1.18% dividend yield, based on last night's closing stock price of $50.72. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $55 price level.
Halliburton Company ( HAL ) and Baker Hughes Incorporated ( BHI ) are both rated "Neutral" by Dividend.com.
Created by Dividend.com