Miller Tabak Cuts Price Target on Schlumberger (SLB), Higher Tax Rate and Slowing Growth

Miller Tabak is reaffirming its Buy rating on shares of Schlumberger (NYSE: SLB), but is cutting its price target from $94 to $90 to go inline with its new earnings estimates.

For Q4 and FY11, the firm is reducing its EPS estimates from $1.12 and $3.68 to $1.07 and $3.64. Miller Tabak also lowered its FY12 EPS estimate from $0.5.10 to $4.85.

The firm notes the new estimates reflect a higher tax rate, which is now 25 percent instead of the 22.5 percent the firm was previously estimating. The rest of the estimate reductions reflect weaker than expected growth in Eastern Hemisphere oilfield revenues and margins, largely in the Middle East Asia region.

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 $66.91 yesterday.

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