Core Laboratories (CLB – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Scott Gruber from Citi upgraded the rating on the stock to a Hold and gave it a $16.00 price target.
Scott Gruber has given his Hold rating due to a combination of factors that reflect a balanced risk/reward scenario for Core Laboratories. The stock has experienced a decline of over 15% year-to-date, which has led to a more balanced outlook in terms of potential risks and rewards. The company’s Production Enhancement segment has decreased in significance, contributing only 11% to the total operating income in the fiscal year 2024. Despite some domestic activity risks, the international segment appears to be more stable.
Moreover, the Reservoir Description segment is expected to grow moderately in 2025, potentially surpassing international upstream capital expenditure growth. This growth is supported by limited exposure to the Mexican market and renewed offshore interest from European international oil companies. Additionally, easing geopolitical tensions between Russia and Ukraine could act as a positive catalyst for Core Laboratories, potentially improving its business environment.
CLB’s price has also changed moderately for the past six months – from $16.520 to $14.620, which is a -11.50% drop .