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Wall Street’s Forecasts for Schlumberger after 3Q16 Earnings

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Oct. 24 2016, Updated 10:04 a.m. ET

Wall Street’s forecasts for Schlumberger

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Consensus rating for Schlumberger

Approximately 78% of analysts tracking Schlumberger rated it a “buy” or some equivalent. Approximately 17% rated the company a “hold” or an equivalent. Only 5% of analysts recommended a “sell.” Schlumberger is 1.4% of the iShares MSCI KLD 400 Social ETF (DSI). The energy sector makes up 6.5% of DSI.

Approximately 62% of analysts tracking Baker Hughes (BHI) rated it a “buy” or some equivalent, and approximately 32% rated it a “hold.” Only 6% rated it a “sell.”

Analysts’ recommendations for SLB

Following the 3Q16 earnings release, BMO Capital Markets, the investment banking subsidiary of Bank of Montreal, gave Schlumberger a target price of $93. Schlumberger currently trades near $83, implying ~12% returns for the next 12 months. Evercore ISI, an independent investment banking advisory firm, gave SLB a one-year target price of $88. This target implies a 6% return over the next year.

Among the large investment banks, Morgan Stanley (MS) gave Schlumberger a one-year target price of $110—one of its highest target prices. This target implies a 32.5% return at its current price over the next 12 months.

Analysts’ target prices for SLB

Following the 3Q16 financial results, the highest target price for SLB is $110 and the lowest is $87. The median target price surveyed among sell-side analysts for SLB is ~$94. SLB is currently trading at ~$83, implying a ~13% upside at its median price.

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