- Morgan Stanley is super positive on Schlumberger (NYSE:SLB) saying that while their near term earnings estimates are not that different to consensus, they believe their longer term growth expectations are radically different to consensus thinking.
In firm's view, we currently have unprecedented visibility to demand growth for much of the drilling/technology related service industry, due to the massive expansion in the offshore rig fleet underway and likely strong growth in the offshore rig count. However, what adds extra juice to the SLB outlook is the likely incremental shift from development to exploration capex over the medium term. Firm sees top-line growth of 20-24% through 2011 translating into 28-32% earnings growth. Their $100 18-month target represents 21.5x revised 2008 estimate.
Reits Overweight. Previous tgt was $86.
Notablecalls: I expect this note to generate strong interest in SLB today. Actionable call. $100 tgt lends considerable upside!
In firm's view, we currently have unprecedented visibility to demand growth for much of the drilling/technology related service industry, due to the massive expansion in the offshore rig fleet underway and likely strong growth in the offshore rig count. However, what adds extra juice to the SLB outlook is the likely incremental shift from development to exploration capex over the medium term. Firm sees top-line growth of 20-24% through 2011 translating into 28-32% earnings growth. Their $100 18-month target represents 21.5x revised 2008 estimate.
Reits Overweight. Previous tgt was $86.
Notablecalls: I expect this note to generate strong interest in SLB today. Actionable call. $100 tgt lends considerable upside!
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