SLB - Schlumberger: The Best Is Yet To Come

2024-02-13 12:19:09 ET

Summary

• Schlumberger's share price has underperformed the market despite strong financial results and expected EBITDA growth in 2024 and beyond.
• Market is discounting the end of the industry investment cycle, but management is confident in future growth, especially in international markets / offshore.
• At around 8.3x expected 2025 EBITDA, the company's valuation offers an attractive entry point compared to the historical average above 11x.

Investment thesis

Schlumberger's (SLB) share price has underperformed the broader market, losing 24% since Q3 2023, despite posting strong results throughout 2023 and despite management's expectation of continued strong EBITDA growth in 2024 and 2025....

For further details see: