What Does Wall Street Forecast for Schlumberger?

Schlumberger’s 2Q15 Earnings Reflect Industry Slowdown

(Continued from Prior Part)

What is Wall Street saying?

In this series, we’ve seen that Schlumberger’s (SLB) stock has held up following its latest earnings release. Now let’s look at what Wall Street forecasts for SLB.

Consensus rating for Schlumberger

Approximately 69% of analysts tracking Schlumberger rate it a “buy” or some equivalent. Approximately 24% rate the company a “hold” or an equivalent, while 7% of the analysts recommend a “sell.”

In comparison, 49% of analysts have rated Weatherford International (WFT) a “buy,” while 29% have rated National Oilwell Varco (NOV) a “buy.” 71% of the analysts tracking Superior Energy Services (SPN) have rated it as a “buy.” SLB makes up 20.6% of the Market Vectors Oil Services ETF (OIH). National Oilwell Varco is set to release its 2Q15 financial results on July 28, while Superior Energy Services (SPN) is set to release its next earnings on July 30.

Analysts’ recommendations

Here are the Wall Street analysts’ recommendations for Schlumberger following its latest quarterly results. RBC Capital Markets, a Canadian investment bank and a part of the Royal Bank of Canada, gives Schlumberger a $104 target price. Schlumberger currently trades near $82, so this target price implies a 27% return for the next 12 months.

Investment bank J.P. Morgan (JPM) has a 12-month target price of $101 for Schlumberger. This target implies a ~23% return from Schlumberger over the next 12 months. Morgan Stanley (MS), an American investment firm, gave Schlumberger the most optimistic target price of $125 with a “buy” recommendation. This implies a whopping 53% return over the next 12 months.

Capital One Securities, an independent research firm, gave Schlumberger a target of $102, which implies a 25% return over the next 12 months. Robert W. Baird & Co., which provides investment banking and investment advisory services, gives a target price of $104. This implies a 27% return over a one-year period at the current price.

Browse this series on Market Realist:

• Part 1 - A Snapshot of Schlumberger’s 2Q15 Revenues and Earnings

• Part 2 - Schlumberger’s Adjusted Earnings Beat Estimates in 2Q15

• Part 3 - Diving Deeper into Schlumberger’s 2Q15 Earnings