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The 2014 All-America Research Team: Oil Services & Equipment, No. 3: Angeline Sedita

< The 2014 All-America Research TeamAngeline SeditaUBSFirst-Place Appearances: 0

Total Appearances: 4

Analyst Debut: 2011

UBS researcher Angeline Sedita advances to third place after three years at runner-up, in part because “her insightful industry pieces and individual company analyses are a must-read for all investors in the sector,” one fund manager insists. Sedita forecasts that U.S. oil services and equipment providers are heading into an up-cycle of at least two to three years, especially the diversified names. She is monitoring the rate of activity growth worldwide, with a greater focus on the North American land market, which is “showing early signs of accelerating and offers greater upside to potential for earnings estimates,” says the analyst. International growth has been steady for several years, she adds, and is modestly slowing. Other catalysts she cites include appealing valuations, significant free-cash-flow growth and increased return of capital to shareholders through dividends and share buybacks. Sedita’s top pick is Houston-based Halliburton Co. The diversified companies offer the most upside earnings revision potential, she explains, and valuations that are below historical absolute and relative norms. “Halliburton is particularly attractive given its still-compelling valuation, which is the lowest of its peer group, coupled with its strong global operational execution, as well as substantial leverage to the positive North American land trends,” Sedita says.

J. David Anderson
J.P. Morgan

James Crandell
Cowen and Co.

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