BofA Securities has increased its price target for SLB to $55.00 from $50.00 and retained a Buy rating on the oilfield services company. The newly set target implies roughly 12% upside from SLB's then-current share price of $49.15 and sits near the stock's 52-week high of $51.67, according to InvestingPro data.
The boost in BofA's target stems primarily from an improved revenue outlook for SLB's international operations, with particular emphasis on the Middle East and Saudi Arabia where upstream spending shows signs of recovery even as the wider oil market continues to face headwinds. That positive view is consistent with SLB's recent market performance: the stock returned 40.78% over the past six months.
BofA's forecast calls for international revenue to be slightly higher year-over-year in 2026, with a more pronounced acceleration in the second half of that year. The firm projects that total revenue for the second half of 2026 could increase about 2% versus the same period in 2025, and that international revenue could grow approximately 4% in that interval.
Concurrently, BofA adjusted its profitability expectations upward. The bank raised its EBITDA estimate for 2026 by 1% to $8.87 billion and lifted its 2027 EBITDA estimate by 2% to $9.47 billion. BofA attributes these upward revisions to anticipated synergies from SLB's CHX acquisition and accretive digital revenue growth, which the firm expects will help counteract ongoing pricing pressures in the sector. Under the new valuation, the $55 target corresponds to a multiple of 10.1 times 2026 estimated EBITDA and 9.5 times 2027 estimated EBITDA.
SLB's own reported results for the fourth quarter of 2025 provided additional support for the more optimistic outlook. The company reported earnings per share of $0.78, beating the consensus forecast of $0.74 by 5.41%. Revenue in the period came in at $9.75 billion, outpacing the projected $9.55 billion.
Following those results, RBC Capital raised its price target on SLB to $54.00 from $51.00 while retaining an Outperform rating. RBC analyst Keith Mackey cited the company's strong free cash flow generation as a factor behind the revised target. Together, the analyst adjustments and quarterly beats reflect improving financial momentum for SLB in the most recent reporting period.
Investors should note that BofA's thesis emphasizes international spending patterns and operational synergies as drivers of the revised valuation. The bank's projections for 2026 and 2027 include modest revenue and EBITDA growth assumptions tied to the expected recovery in select international markets and the integration benefits from recent acquisitions and digital initiatives.
Context and implications
For market participants, BofA's action is a reminder that broker targets incorporate both near-term reported results and forward-looking assumptions about regional spending and operational gains. The adjustments to EBITDA and the valuation multiple show how expected cost offsets and revenue mix shifts feed into target-price calculations. SLB's recent outperformance and the two analysts' more bullish targets will likely be monitored by investors assessing exposure to the oilfield services segment.