CIBC World Recommends Buying Schlumberger

Analyst Allen Brooks notes the oil-services firm's recent acquisition of a leading chipmaker

CIBC World reiterated its buy on Schlumberger(SLB ).

Analyst Allen Brooks thinks the shares may tread water as its move into non-oilfield related technology areas pressures its stock price. He notes the company recently agreed to acquire Bull CP8, a subsidiary of Groupe Bull, for $325 million.

He says Bull CP8 is a leading provider of highly secured microprocessor-based cards (SmartCards) and notes that the Bull CP8 deal is being followed by a bid for Sema PLC, a troubled U.K information technology and business services company. Brooks says that in the large cap area, he prefers Baker Hughes (rated strong buy with $51 target).

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