Goldman Sachs making positive comments on Buy rating on HAL and SLB
- SLB price target $100
- HAL price target $49.50
- firm sees HAL and SLB as beneficiaries of upcoming constraints in frac sand logistics
- firm notes that rising per well sand usage is likely to create inefficiencies in frac sand distribution in 2017/2018. Owing to scale and logistical advantages, firm estimates HAL and SLB (on the Conviction List) can generate an incremental $7-$20/T in pressure pumping profits versus peers
- firm believes HAL/SLB are the likely beneficiaries and best positioned to exceed last peaks EPS owing to their scale and financial flexibility, which should drive market share gains and premium NAM margins (900bp)