Wall Street analysts’ recommendations
In this part, we’ll look at changes in Wall Street analysts’ recommendations for Schlumberger (SLB) in 2016.
Consensus rating for Schlumberger
In November, 83% of the analysts tracking Schlumberger rated it a “buy” or some equivalent. The other 18% of the analysts tracking Schlumberger recommended either a “hold” or a “sell.” In comparison, ~88% of the analysts tracking Halliburton (HAL) rated it a “buy” or some equivalent.
Analysts changed their ratings
There were at least five broker rating changes for Schlumberger in 2016. Jefferies, a global investment banking service provider, upgraded its rating to “buy” on November 15. Scotia Howard Weil, a firm specializing in energy investment, downgraded Schlumberger’s rating to “sector perform” in May 2016.
In April, global investment bank Barclays (BCS) upgraded Schlumberger’s rating to “overweight.” Schlumberger accounts for 6.3% of the iShares North American Natural Resources ETF (IGE). The Oil & Gas Equipment & Services sector makes up 13.0% of IGE.
Analysts’ target prices
The highest target price for Schlumberger is $110, while the lowest is $74. The median target price, surveyed among the sell-side analysts, for Schlumberger is $93.41. Currently, Schlumberger is trading at ~$84.6. It implies an ~10% upside at its median price.
Read The Oilfield Equipment and Services Industry: A Primer to learn more about the OFS industry.