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The European energy services sector faces a brighter future once the Middle East conflict de-escalates as a result of work that oil producers need to undertake to resolve disruption, according to Barclays Plc analysts.
Companies such as Technip Energies SA and Viridien SA are set to see increased demand as countries look to replenish their inventories and attend to the damage caused during the conflict, analysts led by Mick Pickup wrote in a note. The volatility in oil and gas prices and disruptions to supply since late February will also prompt more nations to take action on energy security, they said.
“We find it difficult not to see any country with resources wanting to secure its own domestic supply,” the analysts wrote. “The era of outsourcing production and refining to lower-cost mega producers appears, to us, to be waning. All these support demand for the services sector from exploration through construction.”
Note: Data is normalized with percentage appreciation as of January 1, 2026. Data is normalized with percentage appreciation as of January 2, 2026.
Source: Bloomberg
France’s Viridien was among stocks upgraded by Barclays on Monday. The broker raised its recommendation to overweight and increased its price target to €200 from €150, the highest among analysts tracked by Bloomberg.
According to Barclays, Viridien can win more work as the industry looks to diversify supply chains. The shares rose as much as 16% to €140.9 and hit a six-year high.
READ: Viridien Pops to 2020 High; Barclays Upbeat on Energy Services
Barclays double upgraded Technip Energies, to overweight from underweight. The company will be the frontrunner for any repair work in Qatar, and this can help increase activity levels through to the end of the decade, Pickup wrote.
On average, Barclays increased its price targets across the sector by 21%.
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