Monday, September 10, 2007

UBS Initiates Oilfield Services

UPDATE 1-RESEARCH ALERT-UBS starts Halliburton, 3 others

Sept 10 (Reuters) - UBS initiated coverage of Halliburton Co (HAL.N), Baker Hughes Inc (BHI.N) and Schlumberger Ltd (SLB.N) with "buy" ratings.

It also started Weatherford International Inc (WFT.N) with a "neutral" rating.

UBS said in a research note that Halliburton was its top pick in the large cap oilfield service and equipment sector, followed by Baker Hughes and Schlumberger.

The brokerage, which has a price target of $52 on Halliburton, said the company was growing as quickly internationally as its competitors, leading with its core competencies in production optimization and drilling services.

UBS said Baker Hughes sought the best-in-class status across all product lines, specifically directional drilling, completions, and drill bits, with considerable offshore success.

The brokerage has a price target of $102 on Baker Hughes.

UBS, which has a price target of $121 on Schlumberger, said the company had become "the gold standard" in the industry by building relationships in key growth areas, stressing local content among personnel, and focusing on providing the highest service quality worldwide.

UBS said it expected Weatherford's growth to moderate with more challenging market share gains, but it should still outpace global upstream spending growth.

The brokerage has a price target of $70 on the stock. (Reporting by Sharangdhar Limaye in Bangalore)

1 comment:

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