Benchmark analysts are bullish on one oilfield services company, telling investors in a note that they see the stock as undervalued.). Benchmark thinks the stock is significantly undervalued and said it is time to"establish a new long position, increase an existing weighting or cover a short."
The low valuation is even more striking when compared to Schlumberger's current financial health. Benchmark highlights the company's"EV/EBITDA multiple of ~7x, the lowest valuation in a non-crisis year since 2011-13." Furthermore, Benchmark believes Schlumberger's strong fundamentals justify a higher stock price. Their estimates include the recent acquisition of ChampionX , which strengthens Schlumberger's position in the production sector.
Furthermore, Benchmark says Schlumberger's AI-powered solutions are experiencing rapid growth and are expected to be a significant profit driver. The company's investment in carbon capture technology positions it well for the energy transition.