Wolfe Research Initiates SLB, Baker Hughes at Outperform

Wolfe Research initiated coverage of three major oilfield services companies on Wednesday, assigning Outperform ratings to SLB (Schlumberger) and Baker Hughes, while rating Halliburton at Peer Perform.

Analyst Carlos Escalante stated that the industry faces "a selective capital cycle favoring international exposure," which benefits companies with strong global footprints.

Rating Changes

• SLB: Initiated with Outperform.
• Baker Hughes: Initiated with Outperform.
• Halliburton: Initiated with Peer Perform.

Analyst Rationale

Escalante believes companies with significant international exposure, such as SLB and Baker Hughes, will benefit from increased capital spending in overseas markets, while Halliburton may face challenges due to its heavier focus on the U.S. market.

Context

The coverage comes amid a shift in the oil services sector toward long-term international projects, with declining activity in North America. None of the three companies have commented on the new ratings.

What to Make of It

Wolfe Research's recommendations reflect a cautiously positive view of the sector, with a clear preference for internationally diversified firms. However, these are analyst opinions and do not constitute buy or sell recommendations.