Jefferies reiterates Buy rating on SLB stock, maintains $53 price target

Published 18/07/2025, 16:02
Jefferies reiterates Buy rating on SLB stock, maintains $53 price target

Investing.com - Jefferies has reiterated its Buy rating on SLB (NYSE:SLB) stock, maintaining a price target of $53.00 following the company’s recent performance. Currently trading at $33.60, SLB appears undervalued according to InvestingPro analysis, with analysts setting targets ranging from $38 to $63.

The research firm described the company’s modest earnings beat as a "slight positive" in its latest assessment of the oilfield services provider. The company maintains strong fundamentals with a "GOOD" Financial Health score and has generated $4.5 billion in free cash flow over the last twelve months.

Jefferies highlighted four key factors that will be crucial for SLB’s outlook: second-half 2025 revenue and margin guidance following the completion of the CHX acquisition and APS Canada divestment, progress on CHX integration and synergies, updates on digital margins and visibility, and management’s perspective on global activity in the second half of 2025.

The firm specifically noted interest in management’s commentary around customers "planning cautiously" and what this might indicate for industry activity levels.

SLB, formerly known as Schlumberger, is one of the world’s largest oilfield services companies, providing technology and services to the global energy industry.

In other recent news, Schlumberger NV reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share of $0.74, surpassing the projected $0.73, and reported revenue of $8.55 billion, slightly above the anticipated $8.52 billion. Schlumberger completed the acquisition of ChampionX, with expectations of achieving $400 million in annual pre-tax synergies. The integration of ChampionX is anticipated to enhance Schlumberger’s production systems portfolio and geographical reach, particularly in North America. Analysts have noted that this acquisition is expected to be accretive to margins and earnings per share by 2026. Despite these positive developments, Schlumberger’s stock experienced a decline in pre-market trading. Looking ahead, the company projects revenue between $18.2 billion and $18.8 billion for the second half of 2025. The firm anticipates that the integration of ChampionX will significantly contribute to its future performance.

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