Key Updates
Schlumberger shares continue to fall, down 2.68% since the last report to $33.44, deepening the company's negative performance in 2025 (-12.78% YTD). Despite a large contract with Petrobras, analysts cut the consensus price target from $46.69 to $46.02, reflecting mixed market sentiment on oilfield services prospects.
Current Trend
Schlumberger shows a persistent downtrend across all time frames: down 1.96% over five days, 6.54% over the month and 7.06% over six months. The 12.78% annual decline far outpaces market indexes, indicating structural issues in the oilfield services sector. The current level of $33.44 sits near its yearly lows.
Investment Thesis
The investment case rests on Schlumberger's leadership in oilfield technology and the potential rebound in upstream activity. The company keeps winning big contracts, including a recent deal with Petrobras to supply advanced well-completion technology for deep-water projects, underscoring its competitive edge.
Thesis Status
The thesis is under pressure as the stock keeps sliding and market sentiment worsens. While the firm secures significant contracts, this has not translated into share price gains. The consensus target drop from $46.69 to $46.02 signals a shift toward more conservative estimates.
Key Drivers
The main positive driver remains a large contract with Petrobras to supply well-completion technology for up to 35 deep-water projects. Negative pressure comes from broader weakness in oilfield services, reflected in systematic underperformance versus the market and analyst forecast revisions.
Technical Picture
The stock is in a clear downtrend, forming lower highs and lower lows. The current $33.44 level is approaching a critical support around $33.00. Trading volume remains elevated on declines, indicating continued seller pressure. The nearest resistance lies in the $35.00-$35.50 zone.
Bull Case
- Winning a large Petrobras contract for advanced deep-water well-completion technology confirms technological leadership (Simply Wall St.)
- The consensus target of $46.02 suggests a 37.6% upside from current levels (Simply Wall St.)
- Position in digital solutions for the oil-gas industry creates long-term competitive advantages (Simply Wall St.)
- Current valuation may reflect excessive market pessimism about oilfield services prospects (Zacks)
- Global footprint and diversified service portfolio support a resilient business model (Simply Wall St.)
Bear Case
- Systematic underperformance versus the market across all time frames points to sector-wide structural problems (Zacks)
- Analyst consensus target cut from $46.69 to $46.02 reflects weakening expectations (Simply Wall St.)
- The 12.78% annual decline shows the company's difficulty adapting to current market conditions (Zacks)
- Negative momentum over the past month (-6.54%) signals increasing seller pressure (Zacks)
- Overall weakness in the oil-gas sector adds further valuation risk (Zacks)