Barclays Maintains an 'Overweight' on Schlumberger (SLB); One to Own for the International Upturn
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Price: $53.63 +0.15%
Rating Summary:
49 Buy, 7 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
49 Buy, 7 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Barclays maintains an 'Overweight' on�Schlumberger (NYSE: SLB) price target cut from $110 to $98.
Barclays analyst says, "Buy the Bellwether: We continue to believe there is considerable upside in the shares of Schlumberger. As near term macro issues subside, we expect the market will once again focus on tight spare capacity in the oil markets and as a result will revisit the oil service group. As this happens Schlumberger will be a key investment and its multiple should expand quickly. The growth in exploration and deepwater activity which we expect to continue will be a differentiator for Schlumberger and will likely drive outsized growth; the international cycle is now underway and will gain momentum and this is disproportionately positive for Schlumberger. In addition, the introduction of new technologies, the most novel of which is expected in 2012, and the continued shift towards performance-based contracts bode well for market share gains and margin expansion. As the cycle gains traction and the market gains confidence in the cycle, we expect Schlumberger to be a go-to stock."
"We are reducing our 4Q, 2012 and 2013 EPS estimates to $1.10 (from $1.23), $5.00 (from $5.65), and $6.35 (from $7.10) primarily reflecting more conservative revenue and margin expectations in North America, and to a lesser extent modestly reduced international revenue growth estimates in 1H12."
For more ratings news on Schlumberger click here and for the rating history of Schlumberger click here.
Shares of Schlumberger closed at $67.38 yesterday.
Barclays analyst says, "Buy the Bellwether: We continue to believe there is considerable upside in the shares of Schlumberger. As near term macro issues subside, we expect the market will once again focus on tight spare capacity in the oil markets and as a result will revisit the oil service group. As this happens Schlumberger will be a key investment and its multiple should expand quickly. The growth in exploration and deepwater activity which we expect to continue will be a differentiator for Schlumberger and will likely drive outsized growth; the international cycle is now underway and will gain momentum and this is disproportionately positive for Schlumberger. In addition, the introduction of new technologies, the most novel of which is expected in 2012, and the continued shift towards performance-based contracts bode well for market share gains and margin expansion. As the cycle gains traction and the market gains confidence in the cycle, we expect Schlumberger to be a go-to stock."
"We are reducing our 4Q, 2012 and 2013 EPS estimates to $1.10 (from $1.23), $5.00 (from $5.65), and $6.35 (from $7.10) primarily reflecting more conservative revenue and margin expectations in North America, and to a lesser extent modestly reduced international revenue growth estimates in 1H12."
For more ratings news on Schlumberger click here and for the rating history of Schlumberger click here.
Shares of Schlumberger closed at $67.38 yesterday.
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