SLB (SLB) PT Lowered to $56 at Susquehanna

Susquehanna analyst Bascome Majors lowered the price target on SLB (NYSE: SLB) to $56.00 (from $60.00) while maintaining a Positive rating.

The analyst commented: "We have updated our SLB model following 3Q24 results. We are now forecasting 2024/2025 EBITDA of $9bn/$9.4bn, compared to $9.2bn/$10bn prior. In addition to the impact of SLB’s sale of the APS business, our updated outlook reflects continued softness in US land activity and more tempered international growth, driven by a slowdown in demand from shorter-cycle international projects. We believe longer-cycle demand is strong enough to net some growth in 2024. Additionally, SLB should benefit from an improving margin profile and FCF growth in 2025. We maintain
our Positive rating, and our price target is now $56, based on our updated estimates. SLB reported 3Q adjusted EPS of $0.89 and EBITDA of $2.34bn, with both figures in-line with our estimates of $0.89 and $2.35bn, respectively. SLB also reported strong 3Q FCF of ~$1.8bn (~77% conversion), well above our estimate of ~$1.4bn."

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