[ET Net News Agency, 1 November 2019] Goldman Sachs lifted its target price for China
Oilfield Services (COSL)(02883) to HK$10.8 from HK$9.51 and maintained its "neutral"
rating.
The research house said COSL reported another very strong quarter in 3Q. The well
services division continues to be the key area of greatest surprise, driven by higher
industry Capex and improvement in COSL's services offering. Management comments also point
to improved drilling profitability, which would appear driven largely by better high
margin jack-up utilization.
Goldman upgraded its EPS forecasts by 68%/61%/51% over 2019-21 post the 3Q results, to
reflect (i) the improving margin from increasing workload, and (ii) the increasing
contribution from the higher-margin well services segments. (KL)