SLB: A Stronger 2027 Is Not Fully Priced In

SLB is rated Buy, with a base case of ~30% upside plus a 2.25% dividend, grounded in normalized multiples on 2027 earnings. Q2 results were mixed year-on-year but sequentially strong, with revenue up 3%, adjusted EBITDA up 7%, and margin expansion, despite Middle East headwinds. Guidance for Q4 is robust: revenue above $10 billion, 24% adjusted EBITDA margin, and a Middle East recovery to $2.1–$2.2 billion in revenue. Shares jumped 11%, but the recovery is not fully priced in.

SLB N.V. (SLB) closed Friday at $52.42, up 11% on the day, and I know that writing something bullish right after an 11% move is not a great look. But what moved the stock was not really This article was written by GT Research 88 Followers Follow I am a lawyer with a strong personal interest in investing and fundamental equity research. Over time, I developed a particular interest in small-cap companies, where I believe careful analysis can uncover businesses that are still misunderstood, underfollowed, or mispriced by the market. My goal is to identify companies with attractive long-term potential, solid business models, and a margin of safety that may not be fully reflected in their current valuation.My professional background in law has shaped the way I approach investment research. Legal training requires close reading, attention to detail, disciplined reasoning, and the ability to evaluate risk from multiple angles. I bring that same mindset to investing, particularly when analyzing corporate filings, disclosures, governance issues, business quality, and management communication. I am especially interested in understanding not only what a company reports, but also how its strategy, incentives, and risk profile may affect long-term shareholder outcomes.I am writing on Seeking Alpha because I enjoy the research process and value the opportunity to share ideas with a serious investing community. Writing helps me refine my own thinking, test my investment theses, and engage with other investors who also appreciate disciplined, independent analysis.Closely associated with Rafael Binatti Costa. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.