According to Benchmark analysts, there is a positive outlook on an oilfield services company, with the stock being considered undervalued. The company in question is Schlumberger (NYSE:). Benchmark believes that the stock is significantly undervalued and recommends investors to either establish a new long position, increase an existing weighting, or cover a short position.
Benchmark argues that the stock is not reflecting its true fundamental value and sees the current price as a great buying opportunity, especially when compared to past major crises like the 2008 financial crisis and the COVID-19 pandemic.
Furthermore, Benchmark highlights Schlumberger’s strong financial health, pointing out its low EV/EBITDA multiple compared to previous years. Historically, such low valuations have resulted in significant rebounds, with an average gain of 20% within 3 weeks.
In addition to financials, Benchmark mentions positive developments for Schlumberger, including strong revenue visibility from long-term projects, the acquisition of ChampionX (CHX), and growth in AI-powered solutions. The company’s investment in carbon capture technology also positions it well for the energy transition.
Overall, with a combination of undervaluation, strong financial performance, and positive growth prospects, Benchmark believes that Schlumberger represents an attractive opportunity for investors.