UBS reiterates Buy rating on SLB stock with $44 price target after Q3

Investing.com - UBS maintained its Buy rating and $44.00 price target on SLB (NYSE:SLB) following the company’s third-quarter 2025 results. According to InvestingPro data, the stock currently trades at $33.39, with analyst targets ranging from $36 to $62, suggesting significant upside potential.

The firm expressed a positive view after analyzing SLB’s re-segmentation and updated disclosures. Despite ongoing macroeconomic concerns and weakening oil prices, SLB largely reiterated its fourth-quarter 2025 outlook. InvestingPro analysis shows the company maintains a GREAT financial health score, with strong profitability metrics and moderate debt levels.

UBS highlighted the Digital Unit’s performance as particularly encouraging, noting it already meets the "Rule of 40" with approximately 35% adjusted EBITDA margins. SLB expects to end the year with Digital Annual Recurring Revenue (ARR) of $1 billion.

The investment bank previously estimated this Digital business could be valued between $6 billion and $16 billion, using a multiple of 7.5-12.5x EV/Sales in its earlier analysis.

SLB projects its Digital growth will outpace both global upstream spending and the company’s core businesses, which UBS believes will drive substantial free cash flow expansion due to the Digital unit’s low capital intensity.

In other recent news, Schlumberger NV (SLB) reported its financial results for the third quarter of 2025, showing a mixed performance. The company achieved an earnings per share (EPS) of $0.69, slightly exceeding the anticipated $0.68. However, its revenue was $8.9 billion, which did not meet the expected $8.97 billion. These results highlight a slight earnings beat but a revenue miss against forecasts. Despite these mixed outcomes, the company’s stock showed a modest pre-market increase. Investors are likely keeping a close eye on these developments as they assess the company’s financial health. The recent earnings report is a critical piece of information for stakeholders and potential investors.

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