Inbox: "Schoeller is my top pick"

Andrea Ferrari , vom Berenberg Sales-Team, meint zu SBO:

• Schoeller is my top pick: there is a buying opportunity in a name at the bottom of the cycle, probably the worst seen by the oil services industry since the 2000s.

• Oil price support should come from an OPEC-Russia agreement to control production, which should ease the global oversupply in 2018.

• In 2016 sales and orders touched their lowest levels in over a decade (since 2003). 2017 showed a nice recovery but still far from the highest levels.

• The international business, notably the Middle East, Brazil and North Sea, has not yet fully recovered after two years of capex reductions. However, 2017 demonstrated some stable investments in upstream that, combined with an increased capex plan, bodes well for 2018.

• Growth in North America is promising, since the rebound in US was explained by real demand and not inventory build-up.