Wall Street’s recommendations on Schlumberger
In this final article of the series, we’ll discuss the Wall Street analysts’ recommendations for Schlumberger (SLB) before its 3Q17 earnings release.
Analysts’ ratings for Schlumberger
On October 2, 2017, a Reuters survey reported that 72% of the Wall Street analysts tracking Schlumberger rated it as a “buy” or some equivalent. Approximately 28% of the sell-side analysts rated SLB as a “hold,” and none recommended it as a “sell.”
In comparison, approximately 79% of analysts tracking TETRA Technologies (TTI) rated it as a “buy” or some equivalent on October 2, 2017, while 21% of the analysts rated it as a “hold.”
Analysts’ rating changes for SLB
From July 2, 2017, to October 2, 2017, the percentage of analysts recommending a “buy” or some equivalent for SLB has increased from 71% to 72%. Approximately 80% of the sell-side analysts recommended a “buy” for SLB a year ago.
Schlumberger comprises 6.6% of the iShares US Energy ETF (IYE). IYE decreased 4% in the past year compared to a 12% drop in SLB’s stock price during the same period.
Analysts’ target prices for SLB and its peers
Analysts’ mean target price for Schlumberger on October 2 was $78.30. SLB is currently trading at ~$69.30, implying an ~13% upside at its current target price. Analysts’ average target price for SLB on October 2, 2017, remained unchanged compared to a month ago.
The mean target price for Key Energy Services (KEG) is $15.00. KEG is currently trading at ~$13.80, implying an ~9% upside in its mean target price.
Wall Street’s average target price for Basic Energy Services (BAS) is ~$25.10. BAS is currently trading at ~$19.80, implying 27% potential returns at its average target price.
You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.