Nomura Securities analyst Matthew Johnston raised estimates and his price target on Buy-rated Schlumberger (NYSE: SLB) to $88.00 (from $81.00) after the company surpassed the firm's most important 1Q benchmarks.

" Most notably, the company posted strong margins in the international segments, alleviating concerns that pricing headwinds in SLB's core geo-markets could pose a longterm risk to margin expansion," Johnston commented.

He added, "Near-term activity declines likely will weigh on profitability, but we think the solid 1Q performance demonstrates that SLB will be able to mitigate any structural deterioration the remainder of this year. The Transformation Program and internal restructuring efforts are paying off. SLB remains best positioned to benefit from the current E&P spending pattern."

The firm adjusted FY16E EPS from $1.70 to $1.25 and FY17E EPS from $2.52 to $2.67.

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Shares of Schlumberger closed at $79.93 yesterday.