Schlumberger, the Energy sector company, was revisited by a Wall Street analyst on July 18. Analyst Saurabh Pant from Bank of America Securities maintained a Buy rating on the stock and has a $40.00 price target.
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Saurabh Pant’s rating is based on Schlumberger’s strong performance in the second quarter, where both revenue and adjusted EBITDA slightly exceeded expectations. Despite a miss in free cash flow due to higher working capital, the company demonstrated resilience with its revenue and EBITDA coming in above consensus. Pant highlights Schlumberger’s constructive outlook for the second half of the year, supported by its robust position in key markets and a diversified portfolio, which includes increased exposure to growing production and recovery markets.
Saurabh Pant also emphasizes Schlumberger’s strategic advantages, such as its extensive international presence and its non-upstream spending related businesses in digital and new energy sectors. These factors, combined with a favorable valuation compared to previous supply-led downturns, contribute to the Buy rating. Additionally, the company’s strong free cash flow and commitment to returning cash to shareholders further reinforce the positive outlook, making Schlumberger well-positioned to navigate market uncertainties.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $38.00 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.