Schlumberger Exec Comments Trigger Price Target Drop From Citi

Citi's Scott Gruber reiterated Schlumberger Limited SLB's Buy rating and lowered the price target from $90 to $89. The price target decrease came after Citi met with Schlumberger's Patrick Schorn, president of operations, at a conference Wednesday.

Schorn influenced several of Gruber's sales guidance metrics, as Gruber believed:

• Characterization revenues should set to decline about 10 percent in Q2 and "decrements should remain elevated"
• Segment decrementals averaged 36 percent over the past year, and 45 percent expected in Q2.
• Drilling revenues were expected to decline ~35 percent in Q2 compared to 30 percent over the last four quarters.
• Production revenues were "set to decline ~10% and historically decrementals exceed 30%"

At time of writing, Schlumberger traded at $79.38, up 1.42 percent.