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