On Tuesday, Berenberg issued an update on Schoeller-Bleckmann Oilfield Equipment AG (SBO:AV) (OTC: SBOEY) shares, lowering the company’s price target to EUR60.00 from the previous EUR70.00, while keeping a Buy rating on the stock.
This adjustment follows the release of the company’s first-quarter results on May 23, which showcased a strong international business performance despite ongoing challenges in the US onshore sector.
The firm observed that Schoeller-Bleckmann’s first-quarter bookings reflected modest growth, signaling a return to normalcy, and anticipates a further increase in the second quarter.
The company’s international exposure, particularly in the Middle East and Asia, is expected to drive further growth. However, due to uncertainties in the US market, the firm has revised its estimates and reduced the price target for the oilfield services provider.
According to the analyst’s commentary, the solid Q1 performance was balanced by the international focus, which helped offset weaker results from the US onshore operations.
The firm remains optimistic about the company’s potential for growth in active international markets, yet it expresses caution regarding the prospects for a recovery in the US within the current year.
Despite the lowered price target, Berenberg reaffirmed its confidence in Schoeller-Bleckmann by maintaining a Buy rating. The company’s stock valuation reflects the mixed outlook, with robust international activity providing a positive counterpoint to the less certain US market conditions. The revised price target of EUR60.00 is now the firm’s expectation for the stock’s future performance.
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