UPDATE 1-Morgan Stanley raises targets for U.S. oil sector cos

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March 17 (Reuters) - Morgan Stanley raised its price targets for several U.S. oil services, drilling and equipment companies, including Halliburton Co (HAL.N: Quote, Profile, Research) and Schlumberger Ltd (SLB.N: Quote, Profile, Research), to reflect the improved outlook into 2010 and beyond.

The investment bank cited an increased offshore rig count visibility through 2010 on continued growth in newbuild program, a record tendering activity across all international rig classes and a global gas market that is eating into the U.S. domestic inventory for the improved visibility.

Analyst Ole Slorer said Dril-Quip Inc (DRQ.N: Quote, Profile, Research), Halliburton, Cameron International Corp CAM.N and Tenaris (TS.N: Quote, Profile, Research) were stocks with the greatest upside in the services and equipment groups, while Hercules Offshore Inc (HERO.O: Quote, Profile, Research) remained his top drilling pick.

Following is a table listing Morgan Stanley's price target changes on the stocks.

PRICE TARGET RATING Company New Old Dril-Quip Inc (DRQ.N: Quote, Profile, Research) $75 $70 Overweight Halliburton Co (HAL.N: Quote, Profile, Research) $60 $54 Overweight Tenaris (TS.N: Quote, Profile, Research) $75 $70 Overweight Cameron International Corp CAM.N $65 $60 Overweight Schlumberger Ltd (SLB.N: Quote, Profile, Research) $125 $120 Equal-weight Weatherford International (WFT.N: Quote, Profile, Research) $100 $90 Overweight Chart Industries Inc GTLS.O $50 $47 Equal-Weight National Oilwell Varco Inc (NOV.N: Quote, Profile, Research) $80 $77 Underweight Smith International Inc (SII.N: Quote, Profile, Research) $80 $75 Underweight W-H Energy Services Inc (WHQ.N: Quote, Profile, Research) $78 $75 Underweight FMC Technologies Inc FTI.N $65 $60 Underweight BJ Services Co (BJS.N: Quote, Profile, Research) $27 $25 Underweight (Reporting by Biswarup Gooptu in Bangalore; Editing by Deepak Kannan)