Now is the best time in 20 years to buy oilfield services stocks - Barclays

Barclays upgraded its rating of the U.S. oilfield services sector and said that now there are the best conditions for buying shares of companies operating in it for the last two decades. And even the possible end of the U.S. war against Iran, which has raised oil prices to their peak over the past few years, does not cancel the bank's positive view.

Barclays on Ma. 7 raised the rating of the sector of services and technologies in the U.S. energy sector from neutral to positive, and also assigned an "above market" rating (corresponds to the advice to buy) shares of several oil service companies, including Halliburton. This was reported by CNBC.

Now is the best time in two decades to invest in oilfield services stocks, CNBC quoted bank analyst Joe David Anderson as saying. Oilfield service companies provide services on exploration, drilling and maintenance of oil fields for producing companies. They do not own the wells, but provide technology, equipment and personnel to optimize oil production.

"As global markets experience an unprecedented oil supply shock, we believe the effects on the oil market will be felt for years to come," Anderson said. High oil prices will set off a multi-year cycle of increased capital investment in crude production and provide a headwind to the entire energy services sector, the bank analyst predicts.

The main beneficiary of the new cycle Barclays calls American oil service company Halliburton. The bank raised its stock rating to Overweight ("above market") and raised the average target price of its shares from $37 to $55, suggesting a potential upside of 40%, relative to the close of trading on May 7. The company's stock has already added 38% since the beginning of 2026, and 20 of 31 Wall Street analysts recommend buying it.

In addition to Halliburton, to the rating of "above market" were upgraded securities of oil service companies Patterson-UTI Energy and ProPetro Holding: their profits are most sensitive to rising oil prices due to the high concentration of operations in North America, according to Barclays. A similar rating was given to securities of companies focused on offshore oil production, such as Transocean, as well as drilling contractors Noble Corporation and Seadrill.

"The offshore sector could be a major winner in the new environment as final investment decisions accelerate and activity begins to pick up," adds Anderson.

This article was AI-translated and verified by a human editor