Hunting (LON:HTG) is highlighted as one of the top picks in the oil services sector by Goldman Sachs, which rates the group a ‘conviction buy’ with an 815 pence a share price target.
Initiating coverage this morning, the blue-chip bank said: “Hunting has built a portfolio of premium equipment suited to challenging onshore shale and deep water plays.
“Recent acquisitions have enhanced the group’s presence in the US market.
“Reflecting its strong position in these high-growth segments, we forecast above consensus growth and expanding returns.”
The shares, which have fallen 13 per cent so far this year, were up 26.2 pence at 636.2 pence following Goldman’s comments.
The analysis of Hunting’s prospects were contained in a broader note on the outlook for the sector.
In it Goldman assessed the potential for the deepwater projects and the new shale North American shale plays to drive demand for the equipment.
Goldman also rates Austrian group Schoeller-Bleckmann (ETR:SLL) a conviction buy, while it initiated coverage of rival Bourbon (EPA:GBB) with a sell.