S&P Capital IQ Reiterates its STRONG BUY Rating on Schlumberger, Target Price Reduced

October 24 00:00 2011

NEW YORK, October 24 (RainbowNewsLine.com) – Analyst Stewart Glickman of S&P Capital IQ reiterates his STRONG BUY rating on the shares of Schlumberger (NYSE:SLB), while reducing his estimates for the company. The 12-month target price is reduced from $107 to $94.

Analyst Stewart Glickman, in a research note published on October 22, mentions that the company reported its Q3 EPS short of the estimates. The company’s Q3 results were driven by strong growth in onshore North America and gains from Middle East and Latin America operations, the analyst says. Schlumberger cited traction of International pricing in wireline, and drilling & measurements, but showed concerns regarding over pricing in North America as pressure was building up due to capacity additions, the analyst says. The EPS estimates for 2011 and 2012 have been reduced from $3.75 to $3.54 and from $5.28 to $5.10, respectively.