Stifel maintains SLB stock Buy rating and $59 target

Published 21/01/2025, 20:08
Stifel maintains SLB stock Buy rating and $59 target

In summary, Stifel analysts have reaffirmed their Buy rating and $59 price target on SLB stock, emphasizing the company's financial strength and potential for rewarding shareholders through buybacks and dividends. For deeper insights into SLB's valuation and financial health metrics, including 12 additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro.

For deeper insights into SLB's valuation and financial health metrics, including 12 additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro. The analysts noted that the company's robust free cash flow (FCF) is expected to support an accelerated share buyback program and an increased dividend for shareholders.

SLB, a leading oilfield services company, reported fourth-quarter results that slightly exceeded expectations, despite a mixed forecast for near-term growth. The analysts highlighted that SLB is in a strong position to achieve long-term growth, bolstered by its solid execution and disciplined spending.

The rise in SLB shares last Friday was attributed to the company's 2025 guidance, which was more optimistic than anticipated by some investors. The company's strong FCF and the decision to speed up share buybacks also contributed to the positive movement in the stock price.

SLB's commitment to shareholder returns remains steadfast, as evidenced by its target to return at least $4.0 billion to shareholders in 2025, following a distribution of $3.3 billion in 2024. This target is supported by the proceeds from the sale of Palliser and the company's disciplined spending approach.

In summary, Stifel analysts have reaffirmed their Buy rating and $59 price target on SLB stock, emphasizing the company's financial strength and potential for rewarding shareholders through buybacks and dividends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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