In a report released today, Arun Jayaram from J.P. Morgan reiterated a Buy rating on Schlumberger (SLB – Research Report), with a price target of $44.00.
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Arun Jayaram’s rating is based on several strategic and financial factors that position Schlumberger favorably in the market. Despite some headwinds in well construction in regions like Saudi Arabia, North America, and Mexico, the company is seen as resilient due to ongoing deepwater market activities and growth in unconventional plays internationally. Schlumberger is also focusing on efficiency and digital investments, which are expected to drive higher returns.
Furthermore, the company is poised to benefit from increased spending by national oil companies, particularly in the Middle East and North Africa. With a strong international presence and a leading position in energy transition technologies, Schlumberger is well-positioned for long-term growth. The anticipated closure of the CHX transaction and the company’s commitment to returning $4 billion to shareholders in 2025 further support the Buy rating, as these factors are expected to enhance shareholder value.
In another report released on June 27, Citi also maintained a Buy rating on the stock with a $46.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLB in relation to earlier this year.