-- RBC Capital Markets said Tuesday that Enerflex (EFX.TO) and CES Energy Solutions (CEU.TO) are part of its list of preferred oil and gas services companies ahead of the first-quarter earnings reporting season.
RBC said Enerflex remains part of its Global Energy Best Ideas list, adding that its estimates are above the street forecast amid solid market fundamentals.
Meanwhile, RBC downgraded Trican Well Service (TCW.TO)'s rating to sector perform from outperform with a C$7.50 price target.
RBC said its covered oil an gas services stocks have increased 36% this year, with US-focused firms generally outperforming those with Middle East exposure.
Key themes though the course of the reporting season will be disruption caused by the Iran War and the ultimate rebuild and production re-ramp effort.
In the US, public exploration and production companies continue to hold the line on spending, but incremental equipment supply tightness could drive pricing higher through the year, RBC said.
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