On Friday, Berenberg reduced the price target for Schoeller-Bleckmann Oilfield Equipment AG (SBO:AV) (OTC: SBOEY) shares to EUR50.00, a decrease from the previous EUR60.00, while still maintaining a Buy rating on the stock. This adjustment follows the company's second-quarter earnings report, which did not meet expectations.
The financial institution cited the ongoing challenges in the US onshore markets as a significant factor affecting the company's profitability. Schoeller-Bleckmann's North American sales saw a 14% decline in the first half of 2024 compared to the same period in 2023. Due to these conditions, the company's management has initiated several strategies aimed at improving future performance.
Despite the negative impact of the US market on the company's recent financial results, the analyst's stance remains optimistic regarding Schoeller-Bleckmann's international business prospects. However, the current uncertainty in the US market has led to a revised outlook for the company's US division, prompting the lowered price target.
The firm's analysis points to a lack of immediate recovery in the US, which has influenced the decision to adjust the company's valuation. Schoeller-Bleckmann's international operations continue to be a source of positive sentiment, yet the challenges in the US market necessitate a more cautious estimation of the company's financial trajectory.
In summary, while the analyst maintains a positive rating on Schoeller-Bleckmann's shares, the less favorable conditions in the US onshore markets have warranted a decrease in the price target to reflect the revised expectations for the company's performance.
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