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Schlumberger’s Strategic Adjustments and CHX Performance Bolster Buy Rating Amid Revenue Concerns

Schlumberger’s Strategic Adjustments and CHX Performance Bolster Buy Rating Amid Revenue Concerns

Marc Bianchi, an analyst from TD Cowen, maintained the Buy rating on Schlumberger. The associated price target was raised to $56.00.

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Marc Bianchi has given his Buy rating due to a combination of factors that suggest potential for Schlumberger’s stock to perform well in the future. Despite the initial concerns over a decline in revenue, particularly related to issues in Ecuador and systematic challenges in the US Land and Offshore sectors, there are positive aspects to consider. The CHX business is showing strong performance, which could provide a buffer against some of the negative trends.
Additionally, after discussions with the company, it appears that the expected revenue decline in the third quarter may not be as severe as initially thought, with a potential for recovery in the fourth quarter. This revised outlook, combined with the company’s strategic adjustments and market position, supports the Buy rating as it indicates a more favorable growth trajectory moving forward.

In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $45.00 price target.

Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLB in relation to earlier this year.

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