Ahead of the Bell: Oil Services

Analysts Charles Minervino and Daniel Boyd said attractive fundamentals moving into 2010 will offset any short-term macroeconomic risks to the price of oil across the sector.

They added Weatherford International Ltd. to their list of recommended stocks, calling it "the most compelling growth story in oil services." Weatherford's shares rose $1.08 to $65.70 in premarket activity.

The analysts upgraded Schlumberger Ltd. to "Buy" from "Neutral" with a $106 price target after a recent dip in shares. The company is a "high-quality stock in a less certain near-term environment." Its stock rose $1.12 to $91.51 in premarket trading.

Baker Hughes Inc. was downgraded to "Neutral" from "Buy" and its price target was lowered to $90 from $96. The analysts said it will take the company longer than expected to turn its operations around. Shares closed Tuesday at $81.35.

The analysts upgraded Dresser-Rand Group Inc. to "Neutral" from "Sell" and raised its price target to $40 from $35. Shares closed Tuesday at $35.39.

But BJ Services Co. was pushed down to a "Sell" rating from "Neutral," and its price target cut to $23 from $26. Shares fell 62 cents, or 2.6 percent, to $23.25 in premarket trading.