Stifel increased its 12-month price target for SLB (NYSE:SLB) to $56.00 from $52.00 on Monday while maintaining a Buy rating, after the oilfield services company posted fourth-quarter 2025 results that exceeded expectations.
The firm said SLB management’s view that "the worst is likely behind us" is consistent with Stifel’s assessment that the period of downward estimate revisions appears to be concluding. Stifel expects growth to resume in the second half of 2026 and to continue into 2027.
In its note, Stifel emphasized SLB’s strong free cash flow generation, noting that the cash profile supports shareholder returns through both share repurchases and dividend payments. The research house also flagged the company’s recently announced acquisition of ChampionX as a favourable development that broadens SLB’s product and service set.
Stifel said merger synergies and an increasing contribution from Digital sales are expected to help expand margins. The firm made only modest changes to its model but raised the price target by $4.00 while reiterating its Buy recommendation.
Other analysts responded positively to SLB’s quarterly performance. Raymond James and BMO Capital highlighted robust contributions from SLB’s Digital and Production Systems segments, which helped push the company to a low-single-digit EBITDA beat versus expectations.
BMO Capital lifted its price target to $55, citing the company’s results as stronger than anticipated. RBC Capital raised its target to $54 and pointed to SLB’s solid free cash flow generation and an adjusted EBITDA figure of $2.33 billion for the period.
BofA Securities moved its price target to $55, attributing the revision in part to a constructive outlook for SLB’s international revenue, with a particular emphasis on the Middle East. JPMorgan similarly increased its target to $54, noting expected improvements in regions including Saudi Arabia and Mexico as well as in deepwater operations.
Taken together, the analyst moves reflect a broadly favourable reception among brokerages to SLB’s quarter and management commentary, with the ChampionX acquisition and free cash flow profile underpinning optimistic forward views.
Context and implications
While the firm-level price target changes vary slightly, a common thread among Stifel and its peers is confidence in SLB’s cash generation and the potential for earnings and margin recovery as the estimate revision cycle eases. The ChampionX deal is viewed as accretive to SLB’s offerings and as a driver of potential margin expansion through synergies and higher Digital sales penetration.