Street view: Global spending cuts, tariffs continue to cloud outlook for SLB

Oilfield services company SLB SLB.N posted a Q1 profit miss and flagged concerns about lower spending by oil producers and tariff costs

At least 4 brokerages cut PT; Median PT of 30 brokerages covering the stock is $48 - data compiled by LSEG

MACRO ENVIRONMENT TO WEIGH ON SLB

J.P. Morgan ("Overweight", PT: $46) says SLB delivered a "more sobering update on the macro picture" with anticipated YoY decline in global upstream spending as OPEC+ speeds up output hikes, economic uncertainty and the impact of tariffs

Tariff exposure remains limited but meaningful; however, SLB's diversified supply chain could mitigate some of the impact - JPM

Jefferies ("Buy", PT: $54) says while 'topline softening' was expected, negative market reaction following Q1 results was due to lack of clarity and near-term visibility; lowers 2025 revenue estimates by 5.5% to ~35.9 bln

Susquehanna ("Positive", PT: $46) says, despite having broad geographic and product diversity, SLB is not immune to softening global upstream spending in 2025

Stifel ("Buy", PT: $54) says while macro headwinds remain, SLB's margin profile is likely supported by its digital business, strength in production systems and cost reductions

Brokerage, however, trims 2025 and 2026 EBITDA forecast to $8.38 bln and $9.08 bln, respectively, from $8.94 and $9.75 bln, respectively, over macro uncertainty