Stifel lowers SLB stock price target to $50 on acquisition adjustments

Investing.com - Stifel has reduced its price target on SLB (NYSE:SLB) stock to $50.00 from $52.00 while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, SLB currently trades at $33.32, significantly below analysts’ consensus targets and suggesting potential upside based on Fair Value metrics.

SLB shares declined Friday after the company reported in-line results for the second quarter of 2025, contributing to an 8% decline over the past week. Despite the stock movement, Stifel indicated that management’s commentary aligned with market expectations. Trading at a P/E ratio of 11.85 and maintaining dividends for 55 consecutive years, SLB shows strong fundamentals. InvestingPro subscribers can access 8 additional key insights about SLB’s financial health and market position.

The research firm acknowledged short-term headwinds and uncertainty but emphasized that the medium to long-term risk/reward profile remains "very compelling." Stifel cited strong expected free cash flow, the completion of the ChampionX acquisition, and SLB’s "high-quality mix of products and services" as supporting factors.

Stifel analysts noted that management effectively highlighted projected synergies from the ChampionX acquisition and indicated that "the path to a strong 4Q revenue ramp is clear."

The price target adjustment reflects Stifel’s updated forecasts incorporating both the ChampionX acquisition and the Palliser sale, while the firm’s positive overall outlook on SLB remains unchanged as reflected in its maintained Buy rating.

In other recent news, SLB reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.74, slightly above the forecasted $0.73. The company’s revenue also exceeded predictions, reaching $8.55 billion against an anticipated $8.52 billion. Stifel maintained its Buy rating on SLB with a $52.00 price target, noting the company’s resilient performance despite industry challenges and highlighting its recent acquisition of ChampionX. This acquisition is expected to generate $400 million in annual pre-tax synergies, enhancing SLB’s production systems portfolio. Citi and BofA Securities both reiterated Buy ratings on SLB, citing attractive valuations despite concerns about global oil market conditions. Jefferies also maintained a Buy rating, emphasizing the importance of SLB’s recent modest earnings beat and the potential benefits from the CHX acquisition. These developments reflect a period of strategic adjustments and positive financial outcomes for SLB amidst broader market uncertainties.

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