The revised target reflects concerns over EBITDA growth due to regional headwinds, despite maintaining a Buy rating.
Citi reduced its price target for SLB (NYSE:SLB) from $68 to $63 while retaining a Buy rating. The new target implies an 18% upside from current levels, down from earlier projections.
The firm cited ongoing weakness in the Middle East as a drag on SLB’s second-quarter EBITDA growth. SLB had previously guided for FY 2026 revenue between $36.9 billion and $37.7 billion, assuming stable oil prices, but geopolitical tensions have disrupted expectations.
SLB remains focused on expanding its digital business, targeting $2 billion in annual revenue by 2030 with margins of 38%-42% by the decade’s end.