Shares in the oilfield services specialist Hunting Plc (LON:HTG) were in demand following upgrade by the investment arm of a leading bank.
Barclays Capital has moved its recommendation to ‘overweight’ based on the recovery in the US shale industry that is yet to be reflected in the stock price.
Its 650p a share target is almost a quid higher than the current valuation.
Having repaired its balance sheet and with price of barrel of crude having stabilised around the US$50 mark, the company should be reaping the rewards.
“The only questions for us are the speed of the recovery and relative valuation,” said Barclays.
“We believe the recovery will likely be sharp, albeit for half the business, but as we move towards full speed in the US, the remainder should also start to improve.”
At 10am, Hunting shares were changing hands for 554p, up 2.5%.
Of the nine analysts logged as following the company seven have similarly positive recommendations; there is only one ‘seller’ of the stock.
The consensus price target, which was 414p six months ago, is 629p.