SLB stock price target maintained at $45 by UBS after 2Q25 results

Investing.com - UBS has reiterated its Buy rating and $45.00 price target on SLB (NYSE:SLB) following the company’s second-quarter 2025 financial results. The stock, currently trading at $33.99, appears undervalued according to InvestingPro analysis, with analysts setting targets ranging from $38 to $63.

The oilfield services company experienced share underperformance on Friday, which UBS attributes to concerns surrounding SLB’s second-half 2025 outlook. These concerns include partial quarter contributions from CHX, purchase accounting assumptions, impacts from divestitures, and tariffs. The stock has declined 8% over the past week, though it maintains a GREAT financial health score and trades at an attractive P/E ratio of 11.85.

Despite these short-term issues affecting guidance, UBS highlighted a significant positive development: SLB plans to report its Digital Unit as a separate segment beginning with third-quarter 2025 results.

UBS views this reporting change as a potential positive catalyst for SLB’s stock performance going forward. The firm noted that New Tech Digital currently represents approximately 2-3% of SLB’s estimated 2026 revenue.

According to UBS’s analysis, the Digital Unit could potentially be worth between 10-25% of SLB’s total enterprise value, suggesting this segment may be undervalued within the company’s current market capitalization.

In other recent news, SLB has reported its second-quarter results for 2025, which aligned with market expectations despite a decline in share value. The company has projected second-half 2025 revenue to range between $18.2-18.6 billion, indicating a softer third quarter for its legacy operations. Meanwhile, Stifel has adjusted its price target for SLB to $50.00 from $52.00, maintaining a Buy rating and highlighting the company’s strong expected free cash flow and synergies from the ChampionX acquisition. Piper Sandler has reiterated its Neutral rating with a $42.00 price target, pointing out a decline in 2025 revenue due to challenges in international markets like Mexico and Saudi Arabia.

Bernstein, on the other hand, has maintained an Outperform rating with a $63.00 price target, noting a stabilizing outlook and potential growth opportunities from offshore spending rebounds in 2026. Citi has also reiterated a Buy rating with a $46.00 price target, suggesting that the negative revision cycle is nearing its end and projecting EBITDA growth driven by deal synergies and digital initiatives. BofA Securities has echoed a Buy rating with a $40.00 price target, despite concerns about global oil market surpluses, emphasizing SLB’s reduced capital intensity and attractive risk/reward profile for medium to long-term investors. These developments highlight diverse analyst perspectives on SLB’s future, influenced by recent acquisitions and market conditions.

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