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Schlumberger: Analysts’ Recommendations before 1Q18

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Apr. 17 2018, Updated 7:31 a.m. ET

Analysts’ recommendations

In this part, we’ll discuss Wall Street analysts’ recommendations for Schlumberger (SLB) before its 1Q18 earnings release.

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Analysts’ rating for Schlumberger

According to data compiled by Reuters, as of April 11, 2018, 78% of the Wall Street analysts tracking Schlumberger rated it as a “buy” or some equivalent. Approximately 19% of the sell-side analysts rated Schlumberger as a “hold,” while 3% rated it as a “sell.”

In comparison, ~70% of the analysts tracking Helix Energy Solutions Group (HLX) rated it as a “buy” or some equivalent as of April 11, 2018, while 20% of the analysts rated it as a “hold.”

Analysts’ rating changes for Schlumberger

On February 11–April 11, 2018, the percentage of analysts recommending a “buy” or some equivalent for Schlumberger increased from 71% to 78%. In comparison, ~85% of the sell-side analysts recommended a “buy” for Schlumberger on April 11, 2017. Schlumberger accounts for 6.4% of the Vanguard Energy ETF (VDE). VDE includes companies involved in the exploration and production of energy products. The oil and gas equipment and services sector accounts for 13.6% of VDE. VDE decreased 1% in the past year—compared to a 15% drop in Schlumberger’s stock price during the same period.

Analysts’ target prices for Schlumberger and its peers

Analysts’ mean target price for Schlumberger as of April 11, 2018, was $81.2. Currently, Schlumberger is trading at ~$67.5, which implies ~20% upside at its current target price. Analysts’ average target price for Schlumberger as of April 11, 2018, decreased marginally compared to a month ago.

The mean target price for Fairmount Santrol Holdings (FMSA) is $5.9. Currently, Fairmount Santrol Holdings is trading at ~$5.0, which implies ~19% upside at its current price. The mean target price for Patterson-UTI Energy (PTEN) is $25.2. Currently, Patterson-UTI Energy is trading at ~$19.3, which implies ~30% upside at its current price.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.

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