Freedom Capital Markets has downgraded SLB (NYSE:SLB) from Hold to Sell, even as it marginally lifted its price target to $48.00 from $47.00. The stock was trading near $50.68 at the time of the note, just shy of a 52-week high of $51.67 - a level Freedom characterizes as leaving limited upside from current prices.
The research house pointed to Schlumberger's fourth-quarter 2025 financial performance as a key driver of the change in view. Adjusted earnings per share fell 15.2% year-over-year in Q4 2025, while revenue for the last twelve months declined 1.6%. Freedom highlighted a modest gross profit margin of 18.7% in its assessment.
Freedom Capital Markets singled out the recently closed ChampionX acquisition as another factor that weighed on Q4 results. The deal, which closed in July 2025, pressured EPS through share dilution and increased the U.S. weighting in Schlumberger's business mix, according to the firm.
Looking ahead, the research team said it expects continued headwinds for oilfield services earnings across 2026, a view that underpins its bearish stance on the shares. Despite raising its price target by a dollar, Freedom concluded that SLB is trading above what it considers fair value and therefore merits a Sell rating.
Other valuation and technical signals were mixed. InvestingPro's Fair Value assessment indicated the stock is currently fairly valued, while technical measures showed the relative strength index in overbought territory. One bright spot noted for some investors is that SLB has sustained dividend payments for 56 consecutive years, a track record that may appeal to income-focused shareholders.
Not all analysts share Freedom's cautious stance. Several brokerages revised their targets higher after Schlumberger's Q4 2025 beat:
- Raymond James increased its price target to $57, citing strong quarterly performance and robust results in the Digital and Production Systems segments.
- BMO Capital raised its target to $55, noting revenues and EPS that surpassed both the firm's own forecasts and consensus expectations.
- Stifel moved its price target to $56, aligning with a positive view on the company's growth trajectory.
- JPMorgan lifted its target to $54 while maintaining an Overweight rating, pointing to a favorable 2026 outlook and expected improvements in international operations.
- BofA Securities raised its target to $55, expressing optimism about international revenue expansion, particularly in the Middle East and Saudi Arabia.
The result is a split analyst landscape: Freedom Capital Markets has taken a conservative stance based on weak drilling activity and acquisition-related dilution, while several other firms have interpreted Schlumberger's quarterly performance and segment strength as reasons to lift price targets and remain constructive.
Investors weighing SLB now face conflicting signals from fundamental results, valuation assessments, and technical indicators. Freedom's downgrade underscores concern that broader oilfield services earnings will remain pressured through 2026, even as other brokerages highlight segment-level momentum and international growth prospects.
For readers: the company’s recent operating performance and the differing analyst views present clear trade-offs between near-term earnings pressure and potential upside tied to segment recovery and international demand.