Update shared on 19 Nov 2025
Fair value Increased 0.15%The analyst price target for SLB shifted slightly higher, rising by $0.07 to $45.37 per share. Analysts point to a mix of digital segment momentum and continued market uncertainty driving divergent views on the company's near-term prospects.
Analyst Commentary
Analyst sentiment on SLB remains mixed in the wake of its latest earnings report, with notable adjustments both upward and downward to price targets. Analysts cited factors including segment momentum, anticipated macroeconomic headwinds, and shifting energy market dynamics as key inputs to their outlooks on the stock.
Bullish Takeaways
- Bullish analysts highlight the recent unveiling of SLB’s digital segment, viewing it as a significant driver for future growth and differentiation.
- The company is perceived to possess several tailwinds that contribute to confidence in its long-term positioning and valuation upside.
- Consistent execution in its core business lines supports optimism toward achieving guidance and justifying premium valuation multiples.
- Some see the recent rebound in oil and gas activity as an early indicator of recovery potential, which supports a favorable view on SLB’s growth prospects.
Bearish Takeaways
- Bearish analysts caution that the challenging macro backdrop in energy, including recent declines in commodity prices, could present headwinds to performance.
- Expectations persist for additional activity cuts, which may impact near-term earnings and moderate growth assumptions for the next several quarters.
- Potential risks are noted in the 2026 timeframe, with some analysts expecting performance to lag consensus estimates if market volatility continues.
- The current environment is seen as favoring longer-cycle, defensively positioned peers. This perspective makes a case for caution on SLB’s valuation and exposure to U.S. Land activities.
What's in the News
- The Trump administration is reportedly drafting a plan to resume offshore oil drilling along California's coast, which could impact SLB and other oilfield services companies (Washington Post).
- SLB announced the launch of Tela, an agentic AI assistant designed to transform workflows and productivity in the upstream energy sector.
- SLB, through its OneSubsea joint venture, has been awarded two sizeable EPC contracts by PTTEP to expand deepwater gas and oil production offshore Malaysia.
- Ormat Technologies and SLB have formed an alliance to accelerate the commercialization of next-generation geothermal (EGS) solutions for expanded clean energy deployment.
Valuation Changes
- Fair Value Estimate has risen slightly from $45.30 to $45.37 per share.
- Discount Rate increased from 7.24% to 7.41%, indicating a modest shift in required return.
- Revenue Growth projections remain stable, edging up only marginally from 4.84% to 4.84%.
- Net Profit Margin declined slightly from 12.74% to 12.72%.
- Future P/E Ratio is now 19.70x, up from 19.09x. This reflects a higher expected valuation multiple.
Disclaimer
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