Analysts at Barclays have downgraded the energy services sector to Neutral from Positive, citing a lack of investor capital despite stable markets. They warn of potential earnings cuts for 2025 and a mid-cycle plateau in spending. Barclays upgraded Oceaneering International while downgrading Valaris Ltd. They recommend buying companies with minimal exposure to upstream spending.
Analysts at Barclays have downgraded the energy services sector on Wednesday, giving it a Neutral rating from Positive amid a bearish oil macro environment. The analysts have highlighted the absence of investor capital influx into the sector despite stable service and equipment markets and disciplined pricing, and see a potential risk for another cut to 2025 earnings. After posting three years of double-digit growth, the energy services sector is now facing a mid-cycle plateau in spending.
and Helmerich & Payne NYSEHP, which are projected to offer a weaker combination of returns and revisions compared to peers. By Alex Kimani for Oilprice.com
ENERGY SERVICES OIL INVESTOR CAPITAL EARNINGS BARRCLAYS
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