Analysts’ recommendation on Schlumberger
In this part, we’ll discuss Wall Street analysts’ recommendations for Schlumberger (SLB) before its 4Q17 earnings release.
Analysts’ rating for Schlumberger
According to data compiled by Reuters, on January 2, 2018, 73% of the Wall Street analysts tracking Schlumberger rated it as a “buy” or some equivalent. Approximately 27% of the sell-side analysts rated Schlumberger as a “hold” and none of the analysts recommended it as a “sell.”
In comparison, ~78% of the analysts tracking Weatherford International (WFT) rated it as a “buy” or some equivalent on January 2, 2018, while 19% of the analysts rated it as a “hold.”
Analysts’ rating changes
From October 2, 2017, to January 2, 2018, the percentage of analysts recommending a “buy” or some equivalent for Schlumberger remained unchanged at 73%. Approximately 81% of the sell-side analysts recommended a “buy” for Schlumberger last year. Schlumberger accounts for 6.3% of the iShares US Energy ETF (IYE). IYE fell 4% in the past year—compared to an 18% fall in Schlumberger’s stock price during the same period.
Analysts’ target prices for Schlumberger and its peers
On January 2, analysts’ mean target price for Schlumberger was $74.7. Currently, Schlumberger is trading at ~$69.5, which implies ~7% upside at its current target price. On January 2, 2018, analysts’ average target price for Schlumberger rose marginally compared to a month ago.
The mean target price for Key Energy Services (KEG) is $11.8. KEG is trading at ~$13.6, which implies ~13% downside at its current price.
To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.