Schlumberger, the Energy sector company, was revisited by a Wall Street analyst on December 19. Analyst Phillip Jungwirth from BMO Capital maintained a Buy rating on the stock and has a $45.00 price target.
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Phillip Jungwirth has given his Buy rating due to a combination of factors tied to Schlumberger’s financial outlook, market position, and valuation. He expects fourth-quarter 2025 results to come in close to guidance, supported by seasonal strength and robust growth in the Digital segment, while free cash flow generation remains solid. Looking into 2026, he forecasts broadly stable revenues with a slight uptick in EBITDA, as expanding Digital operations help offset regional pricing pressure and support healthy margins. He also highlights improving activity in key international markets such as Saudi Arabia and deepwater basins, alongside resilient spending in most other regions, which should underpin a gradual earnings expansion.
Jungwirth emphasizes Schlumberger’s strong strategic positioning, noting its leading exposure to international oilfield services and its superior EBITDA and free cash flow margin profile relative to peers. He sees the company’s technology leadership and high-margin Digital business as important drivers of long-term value, with Digital revenues and margins expected to trend higher. Additional upside catalysts include a successful integration of the ChampionX acquisition and visible progress in monetizing Digital solutions, which could further enhance growth and profitability. With the stock trading near the lower end of its historical valuation range while these structural and cyclical tailwinds are in place, he views the risk/reward as attractive and supports a Buy recommendation.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $51.00 price target.
SLB’s price has also changed slightly for the past six months – from $35.850 to $38.080, which is a 6.22% increase.