Melius Research Initiates Schlumberger Limited Coverage with Buy Rating

Melius Research initiates coverage of Schlumberger Limited (SLB) with a Buy rating and sets a $82 price target. The firm believes the energy industry is in the early stages of a "Power Revolution" driven by AI, which will lead to new winners and shift leadership in the industry. SLB provides energy technology and operates through four business segments: Digital and Integration, Reservoir Performance, Well Construction, and Production Systems.

Melius Research has initiated coverage of Schlumberger Limited (NYSE: SLB) with a Buy rating and a price target of $82. The firm believes that the energy industry is in the early stages of a "Power Revolution" driven by artificial intelligence (AI), which will lead to new winners and shift leadership in the industry. Schlumberger, a major oilfield services company, is poised to benefit from this transformation.

Schlumberger recently launched a new digital services segment, projected to deliver 10%–15% annual revenue growth starting in Q3 2025. This segment is expected to play a significant role in the company's future growth, leveraging AI to enhance operational efficiency and drive innovation [1].

The analyst's bullish outlook on Schlumberger is supported by the company's recent financial performance. Schlumberger reported $0.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.73 by $0.01. The company also experienced a 6.5% year-over-year decline in revenue, which the analyst attributes to market conditions rather than operational issues. Furthermore, Schlumberger's return on equity (ROE) was 20.99%, and its net margin was 11.53%, indicating strong financial health [1].

Schlumberger's dividend policy is also attractive. The company declared a quarterly dividend of $0.285 per share, set to be paid on October 9th, representing an annualized yield of 3.5%. This dividend payout ratio (DPR) of 39.04% leaves room for future dividend increases as the company continues to grow [1].

Institutional investors have shown confidence in Schlumberger, with several firms increasing their holdings in the first and second quarters of 2025. First Command Advisory Services Inc., Twin Peaks Wealth Advisors LLC, and others have significantly increased their stakes in the company, highlighting the belief in Schlumberger's long-term prospects [1].

Wall Street analysts have generally been positive about Schlumberger. Four investment analysts have rated the stock with a hold rating, thirteen have given a buy rating, and two have assigned a strong buy rating to the company. The consensus rating is "Moderate Buy" with an average price target of $49.28 [1].

Representative Lisa C. McClain, a member of the U.S. House representing Michigan's 9th Congressional District, recently purchased between $1,001 and $15,000 in Schlumberger shares on July 16th. This trade, disclosed on August 13th, suggests that even political figures are bullish on the company's future [1].

In summary, Melius Research's initiation of coverage of Schlumberger with a Buy rating and $82 price target is well-supported by the company's strong financial performance, promising growth prospects, and positive institutional and analyst sentiment. Investors should closely monitor Schlumberger's progress as it navigates the energy sector's transition towards AI-driven solutions.

References:
[1] https://www.marketbeat.com/instant-alerts/rep-lisa-c-mcclain-purchases-shares-of-schlumberger-limited-nyseslb-2025-08-15/