Rising Global Energy Demand Will Drive Digital And Low-Carbon Expansion

The analyst price target for Schlumberger has been trimmed slightly from $46.69 to $46.02, as analysts cite persistent commodity headwinds and a challenging outlook for key markets.

Analyst Commentary

Recent analyst commentary on Schlumberger presents a mix of optimistic and cautious perspectives, with several adjustments to price targets reflecting ongoing industry and market dynamics.

• Bullish analysts continue to view Schlumberger as a leader in oilfield services and maintain Buy ratings. They cite the company’s strong position in the sector, even in the face of short-term volatility.
• The growing adoption of artificial intelligence within "Energy & Power" is recognized as an early-stage catalyst for long-term growth. Analysts note that the company is positioned to benefit from this structural shift.
• Attractive valuations and the potential for a positive macroeconomic turn later in the year are seen as possible triggers for a rebound in shares.

• Commodity headwinds persist and continue to limit upside for Schlumberger. This has led several analysts to reduce price targets across the board.
• Market activity in key regions, including Saudi Arabia and Mexico, remains challenged. These conditions are overshadowing growth opportunities in other areas.
• Lowered guidance and ongoing estimate reductions suggest that shares may remain range bound until clear evidence of stabilization or improvement emerges.
• Investor sentiment is described as poor. Some analysts express concerns that further downward revisions to outlooks may still be needed before the stock regains momentum.

What's in the News

• Barclays has lowered its price target on SLB shares to $47 from $48, citing weak investor sentiment and expected downward revisions to 2025 and 2026 outlooks. The firm also notes that attractive valuations could become a positive catalyst if the macroeconomic environment improves (Barclays Q2 preview).
• SLB announced a major contract from Petrobras to provide advanced completions technologies and digital solutions for up to 35 ultra-deepwater wells in Brazil's Santos Basin, with work slated to begin in mid-2026.
• The Board of Directors has proposed amending the company's Articles of Incorporation to change the legal name from Schlumberger N.V. to SLB N.V. The proposal was adopted by unanimous board vote and is pending shareholder approval.
• SLB reported the repurchase of over 9 million shares this quarter, representing 0.67% of outstanding shares, as part of its ongoing buyback program.
• SLB secured a carbon storage site development contract in the North Sea, deploying its Sequestri carbon storage technology for the Northern Endurance Partnership project's six wells.

Valuation Changes

• The consensus analyst price target has decreased modestly from $46.69 to $46.02.
• The discount rate has declined slightly from 8.01% to 7.89%.
• The revenue growth forecast has risen from 2.91% to 3.70%.
• The net profit margin estimate has increased slightly from 12.78% to 12.98%.
• The future P/E ratio is lower, moving from 14.08x to 13.31x.