Jefferies cuts SLB stock price target to $59, maintains Buy rating

Published 27/03/2025, 14:12
Jefferies cuts SLB stock price target to $59, maintains Buy rating

On Thursday, Jefferies financial firm adjusted its outlook on SLB (NYSE: SLB), reducing the price target to $59.00 from the previous $60.00 while reaffirming a Buy rating for the company’s shares. Currently trading at $42.42, SLB maintains a P/E ratio of 13.5x and has demonstrated solid revenue growth of 9.52% over the last twelve months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations, with analyst targets ranging from $44 to $64.

The analyst at Jefferies provided insight into the factors that investors are closely monitoring with regard to SLB. These include a potential bottoming out in earnings or a halt to negative revisions, the closure of the CHX deal, greater clarity on Digital & Integration (D&I) margins and outlook following the Palliser acquisition results, and the impact of self-help initiatives and sales of non-core assets.

Jefferies’ valuation and discounted cash flow (DCF) analysis underpins their view that the risk/reward profile for SLB is currently attractive. The firm has delved into various aspects of SLB’s business, including the forecast for the first quarter of 2025, updating their assessment of these key elements.

SLB’s stock price target reflects Jefferies’ expectations based on the company’s financial health and market position. Despite the slight decrease in the price target, the Buy rating indicates that Jefferies continues to see a positive outlook for the company’s stock.

The report from Jefferies serves as a barometer for SLB’s financial trajectory and potential investor sentiment. It is an indicator of how financial analysts view the company’s future performance and market value.

In other recent news, Schlumberger Limited (NYSE:SLB) has been in the spotlight with several key developments. RBC Capital Markets has adjusted its financial outlook on SLB, reducing its price target to $55 while retaining an Outperform rating, citing the closing of the CHX acquisition as a significant event. SLB has also been undergoing a business restructuring, including workforce reductions and the establishment of a new performance function, as part of a cost-saving initiative. In collaboration with Aker Solutions, SLB Capturi has secured a contract for a carbon capture project in Oslo, Norway, which is expected to be completed by 2029.

Stifel analysts have maintained a Buy rating on SLB with a $59 price target, highlighting the company’s strong fourth-quarter performance and optimistic 2025 outlook. Meanwhile, TD Cowen has increased its price target for SLB to $55, maintaining a Buy rating, following better-than-expected guidance for the first quarter and 2025. The company has been focusing on shareholder returns, aiming to return at least $4.0 billion in 2025. These developments reflect SLB’s strategic efforts in restructuring, acquisitions, and enhancing shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.