Citi Lowers SLB Price Target Due to Ongoing Weakness in the Middle East

With an average upside potential of 37.37% according to Wall Street analysts, SLB N.V. (NYSE:SLB) is included among the 10 Most Promising Energy Stocks to Buy Now.

SLB N.V. (NYSE:SLB) engages in the provision of technology for the energy industry worldwide.

On July 1, Citi cut its price recommendation on SLB N.V. (NYSE:SLB) from $68 to $63, but maintained a ‘Buy’ rating on the shares. The lowered target still represents an upside of over 18% from the current levels.

Citi trimmed its estimates for SLB’s second quarter, saying that the ongoing weakness in the Middle East is expected to negatively impact the company’s EBITDA growth. The analyst firm believes that SLB is unlikely to see any significant upside unless the headwinds in the region begin to subside.

Back in January, SLB N.V. (NYSE:SLB) guided its FY 2026 revenue to be between $36.9 billion and $37.7 billion, but this outlook assumed oil prices to remain range-bound in the high 50s to low 60s. However, the recent US-Iran war pushed global crude prices to multi-year highs, providing a significant boost to operators like SLB. The company is also targeting to nearly double annual revenues in its digital business ​to as much as $2 billion by 2030,  with margins expanding to a range of 38%-42% towards the end of the decade.

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