Credit Suisse Lower Schlumberger Ltd Price Target

Credit Suisse lowered its price target for Schlumberger Limited SLB from $142 to $135 and maintained an Outperform rating in a report issued Monday.

The report comes after the company recently beat 3Q earnings expectations.

Analysts led by James Wicklund noted that the company is “going through a rare, generational efficiency drive of such magnitude, that it has been termed “transformational” by management and its board which we think is under appreciated by some investors and will only get better.”

“Completing more acquisitions in Q3 and on pace to sell more than 7,000 pump jacks and install more than 5,000 PCPs in '14 in North America validates its scope and consolidation into one customer facing organization is a move that should differentiate SLB in one of the fastest growing OFS segments,” according to Wicklund.

The report concluded that “using SLB’s trailing six year P/E of 18 and a 10 percent discount rate, we get a present value target price of $138 per share. While, other OFS stocks show higher EPS growth they also have higher volatility. We would use the opportunity of the stock correction, down ~20 percent since July 4th, to add to positions.”

Schlumberger Limited traded at $94.25 in the premarket, up 0.30 percent.