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Energy

Schlumberger Limited. (SLB) Estimate Revision Prompts A Price Target Cut At Simmons

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Schlumberger Limited is slated to hold Q2 earnings call on July 21

Schlumberger Limited (NYSE:SLB) is a gigantic multinational organization that is a part of the oil and gas industry. The company is currently the world’s largest oil field services company with operations in 85 countries globally. The company has four principal executive offices, three of which are located in Europe, while, one is located in the United States. It was founded in 1926 by brothers Marcel and Conrad of the Schlumberger family. The company currently has more than 95,000 employees representing several nationalities from across the globe.

Simmons, a financial research and sell side firm has cut the price target of Schlumberger ahead of its Q2 earnings. The cut in price target comes less than 48 hours away from the company’s scheduled Q2 earnings call. Analyst Bill Herbert explains that given the current price of $60 per barrel of oil the EPS estimate for 2018 is $3.64. However, the rapidly changing oil price scenario provides a large upside potential and given a reasonable price appreciation per barrel of oil over the coming days the EPS estimate range for 2018 effectively goes to $4.80 to $4.94. Based on current estimates the analyst believes that $84 per share is the most reasonable estimate for stock price, while, for the upside EPS scenario the valuation of $90 to $100 per share seems viable. The analyst reaffirmed an Outperform rating on the stock, while, cutting the price target down to $84 from prior $86.

Schlumberger has a market capitalization of $109.36 billion with average trading volume of 6.46 million shares. The stock has a 52-week range of $59.60 to $91.82. The analyst opinion for SLB has 12 Strong Buy, 21 Buy, seven Hold and one Underperform rating. The stock closed at $77.50 yesterday.

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