Societe Generale starts SLB at Buy, sees strong growth out to 2050

As previously reported, Societe Generale initiated coverage of SLB with a Buy rating and $81 price target. The company achieved an 8% revenue CAGR over 1965-2022, and now has has sufficient financial/intellectual resources to continue to generate strong growth out to 2050, the analyst tells investors in a research note. The industry suffered a downturn during 2014-2020, leading to a major restructuring of the group in 2020, but SLB has now entered a new upcycle in 2022, which could extend to 2030, the firm added. Societe Generale further states that SLB’s newly formed OneSubsea JV is a “genuine new medium-term catalyst”.