SLB (NYSE:SLB) Valuation in Focus After Launch of Tela AI Assistant for Energy Sector

SLB (NYSE:SLB) has just introduced Tela, a new AI assistant built specifically to boost productivity and efficiency for clients in the upstream energy sector. This move signals SLB's focus on leveraging artificial intelligence to address industry complexity and the evolving workforce needs.

See our latest analysis for SLB.

SLB’s introduction of Tela comes on the heels of a recent contract win with PTTEP, hinting at building momentum for the company despite industry challenges. The stock’s 16% share price rally over the past month has trimmed some year-to-date underperformance, but its one-year total shareholder return is still negative and there is ground to recover from recent weakness. In the longer term, the five-year total return above 100% shows SLB’s resilience and potential upside when the cycle turns in its favor.

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The question now is whether SLB’s recent rally leaves the stock attractively valued or if the current price already reflects optimism about future AI-driven growth. This poses a challenge for investors seeking a clear buying opportunity.

Most Popular Narrative: 18.5% Undervalued

SLB’s most closely-followed valuation narrative sets a fair value well above its last close, suggesting a significant disconnect between the market price and what analysts project based on future performance. This gap points to expectations of continued business momentum and improved margins from digital expansion and operational synergies.

Persistent industry demand for digital transformation, automation, and efficiency, driven by operator focus on production optimization and recovery, has led to strong adoption and double-digit year-over-year growth in SLB's digital business (notably the DELFI platform). This bolsters net margins and creates a more stable, higher-margin recurring revenue stream.

Read the complete narrative.

Curious what projections justify this bullish price tag? The real drivers here are bold growth forecasts and margin upgrades that challenge legacy expectations. Consider digital tailwinds, new synergies, and financial targets that could surprise even seasoned investors. Find out what assumptions are powering this optimistic narrative by digging into the full story.

Result: Fair Value of $45.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent fluctuations in the commodity market and potential integration risks from new acquisitions could quickly challenge even the most optimistic forecasts for SLB.

Find out about the key risks to this SLB narrative.

Build Your Own SLB Narrative

If you see things differently or would rather investigate and draw your own conclusions, you can shape your own insights in just a few minutes, so why not Do it your way

A great starting point for your SLB research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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