Barclays upgrades ChampionX to Overweight on earnings visibility

Barclays analyst J. David Anderson upgraded ChampionX to Overweight from Equal Weight with a price target of $42, up from $33. With the global upstream spending cycle still in the early stages, Barclays remains positive on the energy services sector, the analyst tells investors in a research note. The firm says the current cycle “appears to be at roughly the first quarter mark with at least 3-4 years of visibility in a number of key upstream markets.” It believes ChampionX has arguably the best earnings visibility in the group. Growth in the company’s production chemicals is driven by capacity expansion projects in the Middle East and offshore deepwater, while its artificial lift business benefits from a maturing U.S. shale market, contends Barclays.