SLB price target lowered to $53 from $54 at Jefferies on earnings view

Published 26/06/2025, 11:06
SLB price target lowered to $53 from $54 at Jefferies on earnings view

Investing.com - Jefferies lowered its price target on SLB (NYSE:SLB) stock to $53.00 from $54.00 on Wednesday, while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The stock, currently trading near its 52-week low at $33.18, shows potential upside according to InvestingPro analysis, with analyst targets ranging from $38 to $63.

The research firm expects SLB to report second-quarter EBITDA of approximately $2.02 billion, which would be flat quarter-over-quarter and about 3% below their previous estimate. This projection aligns with the operational update SLB provided earlier.

Jefferies forecasts SLB’s second-quarter revenue at approximately $8.5 billion, flat from the previous quarter, with earnings per share of $0.72. The firm’s analysis suggests steady performance despite challenging market conditions.

The research firm believes investors will focus on several key areas when SLB reports results, including the closing of the CHX acquisition expected in early third quarter and guidance for second-half revenue and margins including the CHX contribution.

Additional investor focus points will include second-half global activity trends, particularly contributions from Saudi Arabia and Latin America, along with further details about SLB’s digital business operations and strategy.

In other recent news, SLB reported its first-quarter 2025 financial results, revealing earnings per share of $0.72, which fell short of the anticipated $0.74. The company’s revenue for the quarter was $8.49 billion, also below the expected $8.64 billion. Despite these misses, SLB’s digital revenue showed strong growth, increasing by 17% year-on-year. In a separate development, SLB has launched Electris™, a new electric well completions technology aimed at enhancing production and reducing costs. Additionally, the company secured a significant EPCI contract for the Ginger project offshore Trinidad and Tobago, marking the first project award under a global framework agreement with bp. On the analyst front, JPMorgan reiterated its overweight rating on SLB, while Stifel adjusted its price target for the company to $54, maintaining a Buy rating. These developments reflect SLB’s ongoing efforts to innovate and expand its market presence amid a challenging macroeconomic environment.

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