Jefferies Raises Price Target on Schlumberger (SLB), Maintains Buy Rating

To go inline with its new oil price forecast and U.S. rig count outlook, Jefferies is becoming even more confident and bullish in its expectations with Schlumberger (NYSE: SLB).

As a result the firm is raising its price target from $96 to $105 and is maintaining its 2011 and 2012 EPS estimates of $3.66 and $4.80. Jefferies is also reiterating its Buy rating.

Jefferies reports that, "we believe oil service investors should favor names with strong international exposure but not abandon names with North American exposure. Our positive outlook for crude oil and the dramatic shift to oil and liquid-rich drilling in North America point to sustained strength in U.S. activity. We remain confident that profitability in North America is much more sustainable than in prior cycles and warrant higher valuations on select names."

For more ratings news on Schlumberger click here and for the rating history of Schlumberger click here.

Shares of Schlumberger closed at $90.85 yesterday.

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