Simmons Raises price Target on Schlumberger Ltd. (SLB) Following 2Q Earnings Review

Simmons reiterated an Overweight rating on Schlumberger Ltd. (NYSE: SLB), and raised the price target to $97.00 (from $84.00), following a 2Q earnings review.

Analyst Bill Herbert commented, "We are increasing estimates sharply due to elevating our price deck last month to $60/bbl in 2017 and $70/bbl in 2018. SLB's Q2 earnings call was comprehensive and nuanced. The outlook has shifted from grim realism in the near-term to increasing optimism. Management remains optimistic over the longer-term E&P reinvestment cycle due to the growing longer-term supply replacement challenge. While management proclaimed that E&P capital spending is bottoming, the pace and magnitude of the recovery, especially for the balance of 2016, continues to be a prominent unknown. Price target is elevated from $83/sh to $97/sh (23x 2018E EPS). Estimated 2016-18 EPS CAGR = 91%. SLB remains a best-of-breed sanctuary within the world of energy possessing a fortress balance sheet, and strong FCF and EPS growth optionality."

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 $81.61 yesterday.

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