RBC Capital lowers SLB stock price target to $46 on macro uncertainty

Investing.com - RBC Capital has lowered its price target on SLB (NYSE:SLB) to $46.00 from $48.00 while maintaining an Outperform rating on the oilfield services company. According to InvestingPro data, the stock appears undervalued, trading near its 52-week low of $31.11, with a P/E ratio of 11.5x.

The firm cited a challenging backdrop for the oilfield services sector, specifically pointing to tariff concerns and OPEC+ production increases that are creating uncertainty in the market. This uncertainty is reflected in the stock’s recent 8% decline over the past week.

Despite these headwinds, RBC Capital continues to view SLB as a "relative pick" within the sector, noting that the company’s stable year-over-year margins demonstrate the benefits of its strategy and market position. InvestingPro data shows the company has maintained dividend payments for 55 consecutive years, highlighting its financial stability.

RBC Capital also highlighted potential catalysts for SLB, including synergy capture from the CHX acquisition that could materialize in coming quarters, though it acknowledged investors may take a wait-and-see approach regarding the company’s second-half 2025 guidance execution.

SLB remains on RBC’s Global Energy Best Ideas List despite the price target reduction, reflecting the firm’s continued confidence in the company’s long-term prospects.

In other recent news, SLB’s second-quarter 2025 financial results prompted mixed reactions from analysts. UBS maintained its Buy rating with a $45 price target, highlighting the potential impact of SLB’s decision to report its Digital Unit as a separate segment starting in the third quarter of 2025. Piper Sandler, however, reiterated a Neutral rating with a $42 price target, citing concerns over a softer third quarter and a projected 6% revenue decline for 2025 due to international challenges and U.S. market deflation. Bernstein expressed optimism with an Outperform rating and a $63 price target, pointing to a more positive outlook for the latter half of 2025 and 2026. Stifel adjusted its price target to $50 from $52 while maintaining a Buy rating, emphasizing the long-term potential despite short-term uncertainties. Citi also reiterated a Buy rating with a $46 price target, suggesting the negative market reaction may be short-lived and highlighting potential EBITDA growth in 2026. These recent developments reflect a range of perspectives on SLB’s future performance and strategic initiatives.

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