Analyst Update: Schlumberger, Halliburton, Five Below

Analysts adjusted their ratings on Schlumberger Limited (SLB), Halliburton Company (HAL), and Five Below Inc (FIVE)

Sep 3, 2015 at 1:38 PM
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Analysts chimed in on oil companies Schlumberger Limited (NYSE:SLB) and Halliburton Company (NYSE:HAL), as well as teen-centric retailer Five Below Inc (NASDAQ:FIVE). Here's a quick roundup of today's brokerage notes on SLB, HAL, and FIVE.

  • SLB is 1% higher this afternoon, trading at $76.18, after receiving an upgrade from Citigroup. The brokerage upped Schlumberger Limited to "buy" from "neutral," but lowered its price target to $87 from $93. HSBC also hit the firm with a price-target cut to $96 from $101, keeping a "buy" rating. Technically, the stock has shed 20% since hitting its year-to-date high of $95.13 in late April. Despite the struggles, analysts maintain a bullish view of the oilfield operator, as 20 of the 28 tracking the firm rate it a "buy" or better (with 19 of those rankings checking in as "strong buys"). Bearish brokerage notes (like the one from late last month) from this bullish bunch could push the stock lower.

  • HAL was also a target of HSBC's trek through the oil patch, receiving an upgrade to "buy" from "hold." The brokerage firm also cut Halliburton Company's target price to $44 from $45, and at last check, the stock was down 0.6% at $37.95. Like its oil brethren SLB, HAL has had a rough go technically. Since hitting a record high of $74.33 in July 2014, the shares plunged 49%. Options players remain undeterred though, adding calls at a rapid pace. As a result of the bullish activity, HAL's Schaeffer's put/call open interest ratio (SOIR) of 0.45 ranks lower than 98% of the readings taken during the past year. If this optimism unwinds, the stock could drill to further lows.
  • FIVE is more than 9% lower at $34.54 this afternoon -- and on track for its worst day since Jan. 15 -- after Credit Suisse cut the retailer's target price to $39 from $40 with an "outperform" rating. Additionally, RBC cut Five Below Inc's price target to $46 from $48 and Deutsche Bank lowered the firm to $42 from $44 in response to the company's second-quarter results. Specifically, Credit Suisse cited concern over FIVE's ability to drive traffic, while Deutsche Bank said, "Investor frustration continues to build on management falling short of top-line expectations, leading to questions on credibility and inconsistent product excitement." While the stock continues to test support in the $34 region, analysts maintain a bullish outlook. At last check, 8 of the 12 following FIVE rate it a "buy" or better. Downgrades from this group could put serious strain on any potential support. 
For other stocks in analysts' crosshairs, read Analyst Upgrades: eBay Inc, Lululemon Athletica inc., and Lannett Company, Inc. and Analyst Downgrades: Twitter Inc, Verint Systems Inc., and Ambarella Inc.
 

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