HSBC ups Wood Group to 'buy' as it says selloff overdone

(Sharecast News) - Wood Group got a boost on Monday as HSBC upped the stock 'buy' from 'hold' and lifted the price target to 780p from 725p arguing that recent downside represents an entry point to a quality name with diversified exposure.The bank said the slide in the share price - down nearly 20% since the beginning in October in line with a wider oilfield services selloff linked to a drop in Brent crude - is overdone and now represents a good buying opportunity."WG's share price performance is flat year-to-date despite significant progress having been made, in our view, to address key investor concerns around the Amec Foster-Wheeler integration, net debt and future growth prospects," it said.HSBC said it had upped its price target on higher 2019-20 revenue growth estimates and a lower net debt estimate."We think WG looks attractive at 9.7x 2020e earnings and we see robust EBITA growth (more than 15%) in 2019e and 2020e," it said, adding that Wood Group is its preferred name in the European oilfield services sector.At 1505 GMT, the shares were up 5.9% to 621.80p.