Stifel cuts SLB stock price target to $54, maintains Buy rating

On Monday, Stifel analysts revised the price target for SLB (NYSE: SLB), a leading oilfield services company, to $54.00, a decrease from the previous target of $58.00. The new target sits within the broader analyst range of $38 to $63, with the consensus maintaining a Strong Buy rating. Despite the reduction, Stifel continues to recommend the stock with a Buy rating, underlining the company’s favorable first-quarter results of 2025 and its financial outlook for the year. According to InvestingPro data, SLB currently trades at an attractive P/E ratio of 11.5x.

SLB’s performance in the first quarter of 2025 and the company’s projections for the year were cited as key factors supporting the positive stance. The firm’s strong free cash flow (FCF) of $4.5 billion in the last twelve months and commitment to substantial cash returns to shareholders were particularly highlighted. The company has pledged to return at least $4 billion to its shareholders in 2025, supported by its impressive 55-year track record of maintaining dividend payments, as noted in InvestingPro’s analysis.

Analysts pointed out that, despite the prevailing macroeconomic uncertainties, SLB’s margin profile is expected to remain robust. This optimism is based on the company’s growing Digital business, the strength observed in its Production Systems, and the impact of cost reduction measures that have been implemented.

Furthermore, SLB has reaffirmed its expectations for strong free cash flow throughout the year. The company’s strategic focus on leveraging its digital capabilities and optimizing production systems appears to be a driving force behind its solid financial performance and outlook.

In conclusion, Stifel’s adjustment of the price target to $54 from $58 reflects a recalibration based on current market conditions and the company’s financials. However, the firm’s maintained Buy rating indicates a continued confidence in SLB’s ability to perform well and deliver value to its shareholders.

In other recent news, Schlumberger NV (NYSE:SLB) reported its Q1 2025 financial results, which showed earnings per share (EPS) of $0.72, missing the forecasted $0.74. The company’s revenue also fell short of expectations, coming in at $8.49 billion compared to the anticipated $8.64 billion. This marks a 3% year-on-year decline in revenue, despite an 8% increase in North American revenue and a 17% growth in digital revenue. Schlumberger has been navigating a challenging market environment, with international revenue dropping by 5%. The company projects flat to mid-single-digit revenue growth for the second half of 2025. Additionally, Schlumberger is anticipating the closure of its acquisition of ChampionX by Q2 or early Q3, which is expected to strengthen its market position. The company remains focused on efficiency gains and capacity expansion, especially in resilient markets like the Middle East and Asia. Despite these challenges, Schlumberger’s digital and low-carbon solutions continue to show promise, with the digital segment growing significantly.

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