Schlumberger Diversifies As Oil Slumps, Stock Undervalued

Apr. 30, 2025 7:30 AM ETSchlumberger Limited (SLB) StockCHX, SLB4 Comments
Michael Del Monte
5.02K Followers

Summary

  • Schlumberger faces headwinds from a softening oil market but finds stability in its digital technology segment.
  • SLB may return to growth in e2h25 through a major offshore contract. Mature well stimulation is providing some stability while new drilling projects subside.
  • Schlumberger and ChampionX are making the appropriate efforts to gain regulatory approval for the acquisition; the deal is expected to close in q2-q3'25.
  • SLB shares are undervalued at 6.33x EV/aEBITDA; I recommend a BUY rating with a price target of $46.67/share, expecting robust performance in the latter half of eFY25.

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Schlumberger (NYSE:SLB) may face certain headwinds as the production environment softens as a result of new barrels coming onto the market through OPEC+. Despite the potential market challenges, Schlumberger is finding strength in

This article was written by

5.02K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BKR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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