Remain Overweight despite slow international recovery
A recovery in International E&P activity has been frustratingly slow, with higher costs than we had assumed, which we reflect in our reduced earnings forecasts. However, a recovery is finally underway and is broadening across key regions, supported by favorable oil prices, a cumulative deficit in spending and a falling inventory of ready-to-produce volumes held by S&P Energy stocks. Despite poor YTD share-price performance (-9%), we argue it is the wrong time to turn pessimistic on SLB. Accordingly we reiterate our Overweight stance, with a reduced price target of $75 (from $90).Schlumberger provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The company has four segments: Reservoir Characterization, which consists of the principal technologies involved in finding and defining hydrocarbon resources; Drilling, which consists of the principal technologies involved in the drilling and positioning of oil and gas wells; Production, which consists of the principal technologies involved in the lifetime production of oil and gas reservoirs; and Cameron, which consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.