Piper assumes Oilfield Services coverage with 4 buys, 4 neutrals

As previously reported, Piper Sandler assumed coverage of Baker Hughes (BKR), TechnipFMC (FTI), Halliburton (HAL) and Tenaris (TS) with Overweight ratings. The analyst also assumed coverage of SLB (SLB), Weatherford (WFRD), Ormat Technologies (ORA) and NOV Inc. (NOV) with Neutral ratings. Oilfield services has endured a number of challenges over the past decade, but despite these headwinds the industry has been “tenacious” and “relentless in its pursuit to maximize value through technology innovation, scale, and service,” the analyst tells investors. The industry has evolved, focusing on margin expansion, free cash flow generation, elevating returns on/of capital, and exploring new markets, but it is still “a cyclical industry at the mercy of the macro” and concerns around near-term cycle deceleration are weighing on sentiment, the analyst added. “Oilfield Services will navigate this as it always does, preparing to catch the cyclical tailwinds when they begin to mount next year,” the analyst concludes.