Schlumberger's (SLB) diversified portfolio capped cuts in earnings estimates after Q1 results trailed Wall Street forecasts, Morgan Stanley said Friday in a report.

Results from Q1 "came in modestly light and guidance/commentary was slightly below expectations," the report said. Morgan Stanley cut its 2025-27 projections for earnings before interest, taxes, depreciation and amortization by 5% and lowered its price target on Schlumberger stock by 10%, citing "less pronounced downward revisions versus some peers."

The company forecast flat to modest revenue growth in H2 from H1, the report said.

Despite macroeconomic uncertainty and weaker upstream spending, Schlumberger's portfolio mix presents "resilience against trends that have weighed on shorter-cycle" North American onshore business, the report said.

Morgan Stanley maintained its overweight rating on Schlumberger stock and cut its price target to $45 from $50.

Schlumberger shares fell 1.4% in recent trading Friday.

Price: 35.23, Change: -0.49, Percent Change: -1.37