Freedom Capital Markets Downgrades SLB (SLB) to Hold

Freedom Capital Markets analyst Sergey Pigarev downgraded SLB (NYSE: SLB) from Buy to Hold with a price target of $47.00.

The analyst comments "The sharp rally in U.S. oil and gas stocks over recent months has taken place with little regard for the sector’s negative fundamental backdrop. Falling oil prices and an oversupplied market are being largely ignored by market players. Rising oil and gas equities amid declining oil prices is a dangerous game for investors. In our view, the euphoria in the U.S. oil and gas sector triggered by the U.S. operation in Venezuela is unjustified. The oil market surplus is likely to continue exerting pressure on hydrocarbon prices at least through the first half of 2026. Under such a scenario, we expect weak operating and financial performance from companies. The companies’ share price performance runs counter to the underlying fundamentals of the hydrocarbon market. Taking into account a 9% q/q decline in average WTI crude oil prices in the fourth quarter of 2025, along with lower refined product prices, we expect weak results from oil producers and refiners for the final quarter of 2025. In our view, the upcoming earnings season (starting in the second half of January) is likely to put pressure on U.S. oil and gas stock prices."

For an analyst ratings summary and ratings history on SLB click here. For more ratings news on SLB click here.

Shares of SLB closed at $43.80 yesterday.

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