Acergy S.A. - Ads Representing One Common Share (MM) (ACGY) Share Price

Consolidation is nearly over. Watch for the next leg up here traders.

Within the oilfield services group, we are positive on London-based Acergy S.A. (Nasdaq: ACGY). With a healthy backlog, significant cash balances and no near-term refinancing requirements, Acergy should weather the challenging business environment better than many of its peers.

Our continued Outperform recommendation on Acergy ADRs also reflects the company’s high-quality client base, which mostly includes well-capitalized oil majors or national oil companies. We believe Acergy’s impending merger with Subsea 7 will create a stronger, more diverse seabed-to-surface engineering and construction player, enabling it to provide a broader array of services.