Goldman Sachs Lifts Oil Services Sector (APC, APA, CVX, COP, DVN, EOG, HES, PBR, SU)

We already noted how Goldman Sachs Group (NYSE: GS) has raised its average oil prices for the years ahead, but the firm has also raised its OIL SERVICES Sector ratings this morning to "Attractive" from "Neutral."  Below are just some of the "BUY-Rated" stocks covered in this call with significant raised estimates:

• Anadarko Petroleum Corp. (NYSE: APC)
• Apache Corp. (NYSE: APA)
• Chevron Corp. (NYSE: CVX)
• ConocoPhillips (NYSE: COP)
• Devon Energy Corp. (NYSE: DVN)
• EOG Resources Inc. (NYSE: EOG)
• Hess Corp. (NYSE: HES)
• Petroleo Brasileiro S.A. (NYSE: PBR)
• Suncor Energy Inc. (NYSE: SU)

The firm believes that $100.00 oil is reality. and is raising price targets by 12% on average with new price targets to reflect the high-end of its trading ranges with what it now sees as a 20% average upside for the Goldman Sachs "Buy-rated" stocks.

The firm had been recommending a strategy of "buy on pullbacks" but it notes that the pullbacks have been shorter and smaller than expected.   The firm believes that the stocks could trade 5% to 10% lower in a correction scenario as of now, but also says it would view any weakness as temporary and would use it as a buying opportunity.

Jon C. Ogg
June 19, 2008