6 Oil and Energy Stocks Analysts Want You to Buy Now
Nabors Industries Ltd. (NYSE: NBR) was part of an oil services call this last week from UBS, and the drilling and rig services provider is seen having big upside here and abroad as it operates around the world. Nabors was even shown to have posted solid earnings recently, when you consider it against peers. Nabors has close to a 2% dividend yield. Shares were previously around $12.00, but the drop in oil prices crushed its stock for a close of $10.94 on Friday. While the consensus price target had drifted down to $16.00, the UBS price target of $17.00 would imply upside north of 50% now, even without the dividend. Nabors has a 52-week range of $9.91 to $27.34.
Sunoco Logistics Partners L.P. (NYSE: SXL) was a serious standout call in a sector upgrade from Credit Suisse this last week. Many MLPs were featured, but all in all Credit Suisse raised its SXL rating to Outperform from Neutral and gave it a $48.00 price target. It rallied about 10% from its lows of the prior week and closed at $36.32 on Friday. Credit Suisse saw close to 50% total return from its analyst call basis, but that would be closer to 40% now that its units recovered. Sunoco Logistics has a consensus price target of $48.40, as well, and a 52-week range of $32.56 to $52.47.
Aspen Aerogels Inc. (NYSE: ASPN) is a tiny company with a $165 million market cap, and it has been listed last as it serves the energy sector but is not an energy company itself. It is an energy technology outfit that uses aerogel insulation for many key refining, petrochemical, LNG and subsea operations. A firm called Global Hunter initiated coverage midweek with a Buy rating and a $13.00 price target. That is versus a $6.85 prior price and a closing price of $7.20 on Friday. Aspen Aerogels has a 52-week range of $6.21 to $11.14, and it still has some 80% implied upside if the Global Hunter assessment is correct. The consensus price target from seven analysts is $10.93, but the highest analyst target is up at $14.00 and the lowest is $8.00. Needham gave it a Buy rating in new coverage ahead of Global Hunter, and its more conservative price target was $9.50.