SLB upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded SLB (SLB) to Overweight from Equal Weight with a price target of $44, down from $46. OPEC+ production increase oil price decline risk is real, the firm says. Risk/reward, L48 vs international positioning and valuation favor large cap diversifieds, in Wells’ view. While the firm believes SLB’s recent acquisitions are dilutive to overall valuation and margins, it also thinks SLB’s legacy performance, high-quality core ops and leading international position deserve a modest premium versus peers. SLB’s leadership in technology, the forefront of the Energy Services sector’s digitalization, and heavy exposure to international energy markets supports the firm’s Overweight rating, Wells adds.