Seeking Alpha

HSBC latest to sing praises for Schlumberger, rally looks set to continue

  • Schlumberger's (SLB +0.2%) recent rally isn't likely to run out of gas anytime soon, HSBC says as it upgrades shares to Overweight from Neutral and raises its target price by $30 to $135 and sees significant medium-term gains "based on a strengthening earnings trajectory, and an improving financial returns and free cash flow profile."
  • Although SLB is flirting with new highs, its impressive growth track appears to justify further price appreciation; at its recent analyst day, SLB said it expects EPS to grow at an average annual rate of 17%-20% and is targeting a return on capital above 20%.
  • "The combination of attractive West Texas Intermediate [oil] prices, rising capital expenditure budgets, [and] strong rig/well count trends suggest we are in the sweet-spot of the oilfield services upcycle," Susquehanna analysts say.
From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs