Canaccord raises PT on some oilfield service providers

Total Energy Services

21/05/2021 10:55

** Canaccord Genuity says oilfield service providers in the
Western Canadian sedimentary basin enjoyed sequential momentum
in Q1 as commodity prices recovered and activity climbed off
depressed H2 2020 levels
    ** Brokerage adds domestic oilfield service pricing has
largely stabilized. However, most service providers are still
generating depressed returns on their assets, with some
reporting growing cost pressures
    ** Commentary from larger players continue to point to a
solid recovery in several international markets through 2022 and
this dynamic will be positive for cos like Precision Drilling
Corp PD.TO  , Ensign Energy Services  ESI.TO  and Total Energy
Services  TOT.TO  - Canaccord
    ** Views investor trading and OFS growth expectations remain
depressed, the OFS sector needs more consolidation to support
investor relevance
    ** Raises PT of Precision Drilling Corp to C$40 from C$38
    ** Raises PT of Mullen Group to C$14.00 from C$13.5 
    
    

 (Reporting by Rithika Krishna in Bengaluru)
 ((Rithika.Krishna@thomsonreuters.com;))