SLB (SLB) PT Raised to $54 at JPMorgan

JPMorgan analyst Arun Jayaram raised the price target on SLB (NYSE: SLB) to $54.00 (from $43.00) while maintaining a Overweight rating.

The analyst comments "There was a lot riding on SLB’s guide as the stock has been the best performing large cap energy stock on a YTD basis, with a 29% YTD rise ahead of Friday’s print. While the company’s 2026 outlook commentary essentially affirmed (but didn’t exceed) consensus expectations, the overall tone of the call was positive with management anticipating an improvement in three of the international problem areas for the industry (Saudi Arabia, Mexico, and deepwater), which negatively impacted the company’s 2025 performance. In addition, SLB expects similar HSD growth in Digital with further margin expansion and tailwinds in Production Systems given robust inbound order activity in Subsea, robust market demand for production-oriented services (intervention, artificial lift, and production chemicals), and synergy capture from the CHX merger. In International markets, SLB expects LatAm, Middle East, and Asia to lead the company’s international growth prospects in 2026, partially offset by slight declines in Europe and Africa. SLB expects to benefit from the revitalization of Venezuela’s oil industry as the company is the only western OFS company that is currently operating in the country as part of CVX’s operating license. While SLB expects slight YoY growth internationally, they anticipate a decline in 2026 NAM land spend. That said, SLB expects its NAM revenue profile to benefit from its Gulf of America footprint as well as growth from its Data Center Solutions segment. Per the 10-K filing, this segment, which includes the design and manufacturing of modular data center infrastructure, grew by 121% in 2025 to ~ $460mm. In 2026, the company anticipates significant growth to a $1bn per annum run rate in revenue by 4Q26."

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