We are upgrading Houston, Texas-based Schlumberger Limited (SLB) shares to Buy from Hold following the recent sell off, which has made valuation very compelling. Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry.

While near-term commodity-price weakness may weigh on the stock price, the company's long-term prospects remain positive, given its strong international footprint, particularly in the Eastern Hemisphere.

Schlumberger is better positioned in the current environment of tentative outlook for the North American market given its low exposure to this region. As such, we view the current pullback in the stock as an excellent opportunity to own an industry leader.