Wall Street Analysts’ Recommendations for Schlumberger



Wall Street analysts’ recommendations 

In this part, we’ll look at changes in Wall Street analysts’ recommendations for Schlumberger (SLB) in 2016.

Article continues below advertisement

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.


More From Market Realist