Energy

CFRA Keeps Strong Buy Opinion On Shares Of Schlumberger Limited

/ / Energy /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $70, down $1, which reflects a 13.8x multiple of EV to projected ’24 EBITDA, a premium to peers. We think a peer premium is merited based on SLB’s peer-leading international and offshore exposure (80% of ’22 revenues vs. a peer average of 66%). We cut our ’23 EPS estimate by $0.04 to $2.95, and lift ’24’s by $0.02 to $3.72. Q3 EPS of $0.78 vs. $0.63, beat consensus by $0.01. Q3 revenue ($8.3B) grew 11% Y/Y, driven by its international segment (+12%). On Wednesday (October 18), the U.S. lifted most of its restrictions against Venezuelan crude for six months. While it is still in the early stages, we think SLB should stand to benefit against its peers, given its track record

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CFRA Lifts View On Shares Of Conocophillips To Hold From Sell

/ / Energy /

We raise our 12-month target price by $21 to $125, a 6.0x multiple of enterprise value to projected 2024 EBITDA, slightly above COP’s long-term historical forward average. Our update is based on our current view that crude oil prices should hold up well in 2024 and could approach the 2022 average (WTI averaged $95/barrel). We lift our 2023 EPS estimate by $0.20 to $8.81 and 2024’s by $0.47 to $10.37. COP’s short-cycle business in the U.S. Lower 48 should benefit from strength in crude prices and a bit of service cost weakness. For longer-term projects like Willow in Alaska, while there remains the prospect for cost overruns (like with many ambitious projects), we think upside potential is there, albeit in the long run. We think the industry is in the early days of a lengthy upcycle given a long period of insufficient spending on new supply, and that should buttress

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