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Wall Street’s Forecast for Schlumberger after 4Q17 Earnings

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Analysts’ forecast for Schlumberger

In this part, we’ll discuss Wall Street analysts’ forecast for Schlumberger (SLB) following its 4Q17 earnings release.

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Consensus rating for Schlumberger

Approximately 71% of the analysts tracking Schlumberger rated it as a “buy” or some equivalent on January 19, 2018. Approximately 26% of the analysts rated the company as a “hold,” while only 3% recommended a “sell” or some equivalent. Schlumberger accounts for 16.9% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ fell 16% in the past year, which underperformed Schlumberger’s 12% decline during the same period.

In comparison, ~47% of the sell-side analysts tracking Core Laboratories (CLB) rated it as a “buy” or some equivalent, while ~53% rated it as a “hold.” None of the sell-side analysts rated it as a “sell.”

Analysts’ rating changes

From October 19, 2017, to January 19, 2018, the percentage of analysts recommending a “buy” or some equivalent for Schlumberger has increased from 70% to 71%. Analysts’ “hold” recommendations have gone down for Schlumberger, while the “sell” recommendations have increased in the past four months. A year ago, ~79% of the sell-side analysts recommended a “buy” for Schlumberger.

Analysts’ target prices for Schlumberger and its peer

Wall Street analysts’ mean target price for Schlumberger on January 19, 2018, was $77.9. Schlumberger is trading at ~$76.4, which implies ~2% upside at its current price. A month ago, analysts’ average target price for Schlumberger was $74.6.

The mean target price, surveyed among the sell-side analysts, for TechnipFMC (FTI) was $33.0 on January 19. TechnipFMC is trading at ~$33.5, which implies ~1% downside at its current price. The mean target price, surveyed among the sell-side analysts, for Fairmount Santrol Holdings (FMSA) was $6.1 on January 19. Fairmount Santrol Holdings is trading at ~$5.9, which implies ~4% upside at its current price.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer and Wall Street’s OFS Picks: 4Q17 Top and Bottom Earnings Stocks.

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