Update shared on22 Oct 2025
Fair value Decreased 1.86%SLB's average analyst price target has edged lower, dropping from $46.02 to $45.16 per share. Analysts are weighing mixed sector trends and persistent commodity headwinds against growth in digital solutions and renewed interest in long-cycle energy investments.
Analyst Commentary
Recent analyst activity surrounding SLB underscores a dynamic outlook, as experts weigh the impact of both sector challenges and transformative developments within the company. Changes to price targets have reflected a combination of cautious macro sentiment and optimism about SLB's strategic positioning.
Bullish Takeaways- Bullish analysts point to the unveiling and growth of SLB's digital segment, seeing it as a key catalyst for future upside and a signal of strong execution beyond core businesses.
- AI adoption and digital transformation within the energy and power sector are regarded as drivers of long-term structural growth for SLB and a signal of enhanced industry leadership.
- Some price target increases reflect confidence in SLB's ability to benefit from supportive industry tailwinds, particularly as investments in long-cycle energy projects gain momentum.
- Despite market headwinds, SLB continues to be favored by analysts for its defensive qualities and exposure to global energy transition trends.
- Bearish analysts caution that persistent commodity price headwinds could limit near-term upside and remain a risk to valuation.
- Recent price target reductions stem from ongoing uncertainty in key international markets such as Saudi Arabia and Mexico, which challenge overall growth prospects.
- A cautious outlook remains for activity in the U.S. Land market, with some seeing any recovery as a late 2026 event rather than a near-term catalyst.
- Analysts expect earnings and guidance over upcoming quarters to broadly match consensus but express concern about visibility and performance risk into 2026.
What's in the News
- SLB announced a major contract from Petrobras to provide advanced completions technologies and digital solutions for up to 35 ultra-deepwater wells in the Santos Basin, targeting challenging oil and gas reservoirs. (Client Announcement)
- SLB completed another tranche of its ongoing share buyback program, repurchasing 3.2 million shares for $114 million between July and September 2025. This brings total buybacks under the plan to nearly 10% of shares outstanding. (Buyback Tranche Update)
- Shareholders approved changing the company's legal name from Schlumberger N.V. to SLB N.V., with amendments to allow use of "SLB Limited" and "SLB Ltd." in international transactions. The new name and by-laws took effect in October 2025. (Special Shareholders Meeting and Bylaw Changes)
- The Board of Directors adopted Amended and Restated By-Laws to reflect the company's new name, effective October 10, 2025. (Changes in Company Bylaws/Rules)
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from $46.02 to $45.16 per share.
- Discount Rate edged lower from 7.89% to 7.85%.
- Revenue Growth expectations have risen, with estimates increasing from 3.70% to 4.74%.
- Net Profit Margin declined modestly from 12.98% to 12.45%.
- Future P/E ratio has increased significantly, rising from 13.31x to 19.88x.
Disclaimer
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