3 Oil Stocks Slapped With Price-Target Cuts – Schaeffers Research (blog)

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Analysts are weighing in on oil-and-gas stocks Transocean LTD (NYSE:RIG)Halliburton Company (NYSE:HAL), and Weatherford International Plc (NYSE:WFT). Here’s a quick roundup of today’s bearish brokerage notes on shares of RIG, HAL, and WFT. 

Wells Fargo Slices Transocean Price Target

Transocean shares are down 1.4% at $7.93, after Wells Fargo cut its price target to $9.50 from $14.50. RIG stock is now sitting at year-to-date a loss of more than 46%, and has been one of the worst second-half stocks to own in the past decade. Recent options buyers have displayed a healthier-than-usual appetite for bearish bets in the past two weeks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock’s 10-day put/call volume ratio of 0.87 is higher than 88% of all others from the past 12 months.

HAL Stock Dips After Pair of Price-Target Cuts

Wells Fargo cut its price target on HAL stock to $51 from $62, while Cowen and Company trimmed its target to $50 from $54. Halliburton stock is down 0.8% at $41.69, and has shed more than 22% so far in 2017, led lower by its 30- and 50-day moving averages. Nevertheless, options buyers have upped the bullish ante on HAL during the past two weeks, and most analysts are firmly in the bulls’ camp.

On the ISE, CBOE, and PHLX, the stock’s 10-day call/put volume ratio of 2.73 is higher than 95% of all other readings from the past year. Likewise, 17 of 21 analysts maintain “buy” or better opinions of HAL shares. A mass exodus of options bulls or a flood of downgrades could exacerbate selling pressure on the oil stock.

Weatherford Stock Hits Multi-Year Lows

Cowen and Wells Fargo also weighed in on Weatherford International stock. The former cut its price target by $1 to $7.50, while the latter reduced its target by more than 31%, from $5.50 to $8. As such, WFT stock has dropped 2.2% to trade at $3.50, flirting with its lowest point in nearly two decades. Considering Weatherford shares have shed nearly half their value in the past three months, the stock could be vulnerable to more analyst backlash. Right now, 11 out of 14 analysts consider WFT a “buy” or better.

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