FBR Feeling Bullish About Oilfield Services -- Market Talk 12/06 09:50 AM
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10:50 EST - FBR suggest investors overweight the broad oilfield-service space because "the global macroeconomic outlook should spur continued record" E&P spending by oil-and-gas companies. The investment bank anticipates some improvement in onshore North America drilling activity after this year's plateau "and continued strong international growth, led by the Eastern Hemisphere." Offshore spending is also seen being upbeat while the sector's valuations are liable to be helped by "a broad, vibrant level of M&A." FBR's favorite is offshore-equipment maker Dril-Quip (DRQ:$110.34,00$0.11,000.10%) while its lone underperform rating is on driller Diamond Offshore (DO:$58.52,00$-0.80,00-1.35%) , saying midwater fundamentals "are foundering" amid "a transient oversupply of deepwater rigs." (kevin.kingsbury@wsj.com)