Schlumberger’s target price
In February 2018, analysts’ mean target price for Schlumberger (SLB) was $82.6. Currently, the stock is trading at ~$44.3—slightly more than half of analysts’ mean target price last year. In February, Schlumberger was trading at $66.9—down 34% in a year.
The above graph shows analysts’ mean target price and recommendations for Schlumberger over 12 months. As the graph shows, analysts’ mean target price for the stock has fallen to $53.9 from $82.6 a year ago. Fewer analysts rate Schlumberger as a “buy” compared to the analysts who rated it as a “buy” a year ago.
Among the 35 Reuters-surveyed analysts covering Schlumberger, seven recommended a “strong buy,” 14 recommended a “buy,” and 14 recommended a “hold.” Schlumberger’s mean target price is $53.9, which implies an upside potential of 22% from its current price.
What’s impacting the stock?
Softness in the North America operations impacted Schlumberger’s performance over the last few quarters. While the company expects growth in its international markets, it sees uncertainty in North American activity in the near term. The company’s lower growth was reflected in its stock price.
Currently, Schlumberger stock looks more attractive than it was a year ago. Together, the top ten institutional investors in Schlumberger added 18.3 million Schlumberger shares to their positions in the fourth quarter.
The impact of softness in the North American drilling activity isn’t limited to Schlumberger. Other oilfield services companies have been impacted too. Next, we’ll discuss analysts’ recommendations for Halliburton (HAL).