SLB stock price target raised to $55 at TD Cowen

Published 21/01/2025, 20:04
SLB stock price target raised to $55 at TD Cowen

TD Cowen's estimates for SLB have been slightly raised, as the first-quarter guidance was already factored into their projections. However, the firm is adopting a more conservative stance for the remainder of 2025 than the guidance suggests. The price target increase to $55 is based on a discounted cash flow (DCF) model that reflects a 9.5% weighted average cost of capital (WACC), without including CHX in the estimate. For deeper insights into SLB's valuation and over 30 additional key metrics, including exclusive Fair Value calculations, check out the comprehensive research report available on InvestingPro. For deeper insights into SLB's valuation and over 30 additional key metrics, including exclusive Fair Value calculations, check out the comprehensive research report available on InvestingPro. The company's first-quarter and 2025 guidance were better than expected, and there was a slight improvement in its capital return strategy.

TD Cowen's estimates for SLB have been slightly raised, as the first-quarter guidance was already factored into their projections. However, the firm is adopting a more conservative stance for the remainder of 2025 than the guidance suggests. The price target increase to $55 is based on a discounted cash flow (DCF) model that reflects a 9.5% weighted average cost of capital (WACC), without including CHX in the estimate. For deeper insights into SLB's valuation and over 30 additional key metrics, including exclusive Fair Value calculations, check out the comprehensive research report available on InvestingPro. Additionally, SLB's message regarding an increased capital return and a lower capital expenditure guide for 2025 were seen as minor yet positive developments.

Despite the positive outlook, the analyst at TD Cowen expressed caution due to the need for a significant recovery in the second half of the year, which may be viewed skeptically by investors given the current macroeconomic uncertainties. The guidance is expected to be updated following the completion of the CHX acquisition, anticipated before the end of the first quarter, which could affect comparisons with the current update.

TD Cowen's estimates for SLB have been slightly raised, as the first-quarter guidance was already factored into their projections. However, the firm is adopting a more conservative stance for the remainder of 2025 than the guidance suggests. The price target increase to $55 is based on a discounted cash flow (DCF) model that reflects a 9.5% weighted average cost of capital (WACC), without including CHX in the estimate.

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