Schlumberger Price Target Upped By $10 By Sterne Agee

Oil services stocks are definitely back in play and Schlumberger (NYSE: SLB), one of the giants in the group, is no exception. Sterne Agee raised its price target on Schlumberger to $85 a share from $75 while upping its 2010 EPS to $2.80 a share from $2.26. Stern Agee also introduced a 2011 estimate of $3.70 a share.

Sterne Agee said Schlumberger's international sales should grow by 2% next year and by 15% in 2011 and the shares should benefit from Schlumberger's ability to generate predictable cash flow. Sterne Agee maintains a "buy" rating on Schlumberger, which is up 15% in the past three months.