Canaccord Genuity Maintains a 'Hold' on Schlumberger (SLB); Slight Beat on Strong NAM

Canaccord Genuity maintains a 'Hold' on Schlumberger (NYSE: SLB) price target of $78.00.

Analyst, Scott Burk, said, "NAM beat, international stagnant. The slight earnings beat was almost entirely driven by better revenues and margins in NAM due to increased offshore activity, more multi-client seismic work and higher land margins. International margins rose only 90 bp despite year-end software sales that would normally boost Q4 margins."

"We’re lowering Q1/12 EPS by $0.06 to account for slow int'l improvement and normal seasonal issues in Q1. Our 2012/13 estimates increase slightly due to better NAM margin assumptions. SLB’s stock is currently trading at 15.1x and 13.2x our 2012/13 EPS estimates, compared to the group average of 10.8x and 9.7x and the stock’s five-year average P/E range of 13.7x-23.0x forward EPS (18.3x average). The stock trades at an EV/EBITDA multiple of 8.3x and 7.4x 2012/13 EBITDA, compared to the group average of 5.7x and 5.2x,"

For an analyst ratings summary and ratings history on Schlumberger click here. For more ratings news on Schlumberger click here.

Shares of Schlumberger closed at $73.80 yesterday.

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