Update shared on11 Sep 2025
Fair value Increased 2.78%Despite ongoing macro uncertainty, subdued international activity, and poor sector sentiment offset by optimism around AI-driven structural gains and potential sector re-rating, Schlumberger’s consensus analyst price target has been modestly raised from $45.43 to $46.69.
Analyst Commentary
- Commodity headwinds and macro uncertainty, including OPEC+ developments, tariffs negotiations, and geopolitical risks, are restricting upside potential and leading to cautious customer activity.
- Weakness and subdued activity in key international markets such as Saudi Arabia and Mexico continue to overshadow growth elsewhere, contributing to downward revisions of estimates.
- Oil service stocks, including SLB, have underperformed the S&P 500, with investor sentiment notably poor and further negative catalysts anticipated, resulting in range-bound trading.
- Bullish analysts highlight the transformative adoption of AI in the energy sector, viewing SLB as well-positioned for long-term gains amid a "Power revolution" and potential shift in industry leadership.
- Depressed sector valuations and the possibility of nearing a final round of estimate cuts may serve as catalysts for share price recovery if macro conditions improve later in the year.
What's in the News
- Barclays lowered SLB’s price target to $47 from $48, citing poor investor sentiment and likely downward revisions to 2025–2026 estimates, but notes attractive valuations could support a rebound if the macro environment improves (Barclays, 2025-07-10).
- The Board of Directors has proposed, and unanimously approved subject to shareholder approval, an amendment to change the corporate legal name from Schlumberger N.V. to SLB N.V., with permissions for use of “SLB Limited” and “SLB Ltd.” in international contexts (Key Developments, 2025-09-08).
- A Special Shareholders Meeting is scheduled for October 7, 2025, in Willemstad, Curacao, where amendments to the Company’s Articles of Incorporation will be considered (Key Developments, 2025-08-29).
- SLB was awarded a major contract by the Northern Endurance Partnership (bp, Equinor, TotalEnergies) to provide technology and services for the development of six carbon storage wells in the North Sea using its Sequestri™ solutions, with initial CO2 storage expected to begin in 2028 and a capacity to permanently store up to 1 billion metric tons (Key Developments, 2025-07-22).
- From April to June 2025, SLB repurchased 9.13 million shares ($460 million), completing 9.73% of total shares repurchased under the program started in 2016; second half 2025 revenue is now guided at $18.2–$18.8 billion, with growth expected to be flat to low-single digits versus the first half, including the full contribution of ChampionX (Key Developments, 2025-07-24, 2025-07-18).
Valuation Changes
Summary of Valuation Changes for Schlumberger
- The Consensus Analyst Price Target has risen slightly from $45.43 to $46.69.
- The Future P/E for Schlumberger has fallen from 15.15x to 14.08x.
- The Discount Rate for Schlumberger remained effectively unchanged, at 8.01%.
Disclaimer
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