Wall Street’s recommendation for Schlumberger
Let’s take a look at Wall Street analysts’ recommendations for Schlumberger (SLB) before its second-quarter earnings release.
Analysts’ rating for Schlumberger
According to data compiled by Reuters, as of July 3, 74% of Wall Street analysts tracking Schlumberger rated it a “buy” or some equivalent. Approximately 23% of the sell-side analysts rated it a “hold,” and 3% recommended a “sell.”
By comparison, 50% of analysts tracking Covia Holdings (CVIA) rated it a “buy” or some equivalent as of July 3, while 40% of analysts rated it a “hold.”
Analysts’ rating changes for SLB
From April 3 to July 3, the percentage of analysts recommending a “buy” or some equivalent for SLB has decreased from 78% to 74%. In comparison, 72% of sell-side analysts recommended a “buy” for SLB on July 3, 2017.
Analysts’ target prices for SLB and its peers
Analysts’ mean target price for Schlumberger as of July 3 was $78.60. It’s currently trading at $65.80, implying a 19% upside to its current target price. Analysts’ average target price for SLB as of July 3 decreased compared to a month ago.
The mean target price for SLB’s smaller market cap peer NCS Multistage Holdings (NCSM) was $20.90 as of July 3. NCSM is currently trading at $14.10, implying a 48% upside to its current price. The mean target price for SLB’s smaller market cap peer Keane Group (FRAC) is $21.10. FRAC is currently trading at $12.90, implying a 64% upside to its current price.
You can learn more about the oilfield equipment and services industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.