Marine Link
Saturday, October 1, 2016

Rates Slashed On Five European Oil Giants

April 11, 2001

Morgan Stanley said on Wednesday it had cut ratings and price targets on five European oil service companies on fears the sector was not immune to a possible U.S. recession and global slowdown.

Analysts at the investment bank cut their rating on Expro to "neutral" from "strong buy", on Coflexip and Stolt Offshore to "neutral" from "outperform" and on Bouygues (BYG.MU) Offshore to "outperform" from "strong buy".

They cut their price target on Geophysique by 20 percent to 80 euros from 100, but increased their target for Technip by five percent to 200 euros from 190.

Technip shares were the most attractive entry point to Coflexip exposure and had the most defensive and diverse earnings profile of the group, Morgan Stanley (MS) analysts said in a research note.

"Commodity supply fundamentals are exceptionally strong, both in the U.S. natural gas market and global oil market, but slowing demand is becoming a concern to us," they said.

OPEC cuts could become increasingly hard to implement in a falling demand environment, they added.

It was also predicted by the analysts that the European oil services stocks going forward were Saipem and IHC Caland.



Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News