SLB (NYSE:SLB) +1.3% in Monday’s trading as Piper Sandler upgraded shares of the multinational oilfield services company to Overweight from Neutral with a $42 price target following slightly better than expected Q3 adjusted earnings, noting the stock has dropped 40% in the 18 months since the announced ChampionX acquisition, underperforming the olfield services sector by a wide margin.
Piper Sandler’s Derek Podhaizer noted that SLB (NYSE:SLB) management is confident in calling a bottom in Saudi Arabia after nearly two years, believing activity is set to recover in H1 2026 both in oil and gas, “a significant improvement for its rate-of-change story,” given the company’s size and scale in the country.
Deepware offshore has been another drag on the SLB (SLB) story, Podhaizer said, and while an
inflection is not expected until mid-to-late 2026, management pointed to a healthy pipeline with
favorable economics due to a number of final investment decisions planned for 2026 and early 2027.
In addition to increased disclosure in the Digital business, the analyst noted management reported $331 million in revenues YTD in Data Center Solutions – which designs and manufactures modular data center enclosures, cooling systems and other hardware for hyperscalers and enterprises – up 140% Y/Y.