Schlumberger’s Resilience and Strategic Positioning Justify Buy Rating Amidst Macroeconomic Challenges

Analyst Daniel Kutz of Morgan Stanley maintained a Buy rating on Schlumberger (SLB – Research Report), with a price target of $45.00.

Daniel Kutz has given his Buy rating due to a combination of factors that highlight Schlumberger’s resilience amidst macroeconomic uncertainties. Despite expectations of a year-over-year decline in upstream spending, Schlumberger’s diverse portfolio, particularly its strong presence in the US offshore market and its digital solutions, provides a buffer against the challenges faced in North American onshore markets. The company’s strategic initiatives, such as the proposed acquisition of CHX and its involvement in data center infrastructure solutions, further bolster its position.
Schlumberger’s international markets are expected to demonstrate more resilience compared to North America, with the Middle East, Asia, and global gas markets identified as key areas of strength. These align with broader market expectations and support the company’s efforts to diversify its portfolio. Although there have been modest downward revisions in earnings estimates, Schlumberger’s strategic positioning and ongoing customer engagements to manage cost increases contribute to the positive outlook, justifying the Buy rating.