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."

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Shares of Schlumberger closed at $81.61 yesterday.