UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Schlumberger Limited on Multiple Value Drivers

In a report published Thursday, Bank of America analyst Douglas L. Becker reiterated a Buy rating on Schlumberger Limited SLB, and raised the price target from $119.00 to $127.00. In the report, Bank of America noted, “Schlumberger's (SLB) investor conference was bullish as we expected. The company set a 2017 EPS target of $9.00-$10.00, driven by new technology introductions, increasing integrated work and transformation programs. The EPS target implies a 2013-17 CAGR of 17-20%, simplistically implying 2016 EPS of $7.60-$8.20 vs the $7.50 consensus. We maintain our 2014/2015E EPS of $5.75/$6.80, but increase 2016E to $8.00 from $7.60. Our 2016 estimate assumes an operating margin of 23.2%, up from 22.5% previously. Our PO increases to $127 assuming a forward P/E (2Q15-1Q16) of 18x, up from 17x. We continue to see possible upside to ~$155 (19x theoretical 2016E EPS of $8.20) if the high end of guidance is achieved.” Schlumberger Limited closed on Wednesday at $113.85.