J.P. Morgan Provides Color on Oil Service and Equipment Sector

J.P. Morgan provided color on the North American Oil Service and Equipment sector. In a research report published today, J.P. Morgan stressed its optimism about the sector. In the report, J.P. Morgan states, "We have raised our North American upstream spending forecasts and materially revised upward our rig count forecast, supported by increasing E&P oil cash flows and our recent survey showing accelerating spending trends. As investors continue to gain confidence in the resiliency and reduced cyclicality of this market, we believe North American service names deserve to be re-rated higher. We have raised estimates for the group on higher revenue and margin assumptions, with Baker Hughes and Halliburton best positioned to take advantage of these trends." J.P. Morgan increased its price target on a number of companies. Schlumberger Limited's SLB target price was increased from $104 to $105. J.P. Morgan currently has an Overweight rating on the company's stock. Halliburton Company's HAL price target was increased from $62 to $65. The rating was set at Overweight. J.P. Morgan increased its price target on Baker Hughes BHI from $85 and $90. At the moment, J.P. Morgan has an Overweight rating on Baker Hughes. J.P. Morgan initiated coverage on Weatherford International WFT. The rating was set at Neutral and price target at $23. In today's trading, Schlumberger lost 1.95% and is currently standing at $81.87, while Halliburton lost 1.65% to trade at $46.40. Baker Hughes lost 1.9% today. Its current price is $68.79. Weatherford closed a bad day for oil companies, as its shares lost 1.32% and are standing at $19.45.