3 Deutsche Bank Oil Services Stock Picks With Over 100% Upside Potential
One thing that is critical for savvy investors is to look at sectors where there is truly blood in the streets. Think back to the financial and home building sectors after the mortgage and housing collapse of 2007/2008. Even the very best companies were trading in the single digits and left for dead. In a recent research report, Deutsche Bank trolled the oil services battlefield and came up with three stocks to buy that could have massive upside potential.
Needless to say, an extended oil price recovery may not come until 2017, and the sector damage is just starting to minimize. Many companies in the oil services area are trying to rein in capital expenditures and keep all costs under control while trying to plan and survive for the future.
These Deutsche Bank stocks to Buy are for aggressive accounts that have a high tolerance for risk. With that caveat in mind, the upside potential is worth the shot.
Deutsche Bank feels this oil field services stock has big potential upside. Exterran Holdings Inc. (NYSE: EXH) is a global market leader in full-service natural gas compression and a premier provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. Exterran Holdings serves customers across the energy spectrum, from producers to transporters to processors to storage owners. Headquartered in Houston, Exterran has more than 10,000 employees and operates in approximately 30 countries.
The company bought the compression assets from a division of Chesapeake Energy last year. The purchase of MidCon Compression allowed Exterran to offer expanded compression services across many of the top shales and basins in the United States.
Exterran investors are paid a 3.23% dividend. The Deutsche Bank price target for the stock is $42, and the Thomson/First Call consensus target is $37.82. The stock closed Monday at $20.66, up over 6%.