Evercore ISI upgraded SLB N.V. (NYSE:SLB) from 'In Line' to 'Outperform' on January 6. The firm increased its price target from $38 to $54.
The analyst stated that SLB's outlook is clearer than it has been in over two years. The upgrade followed SLB's $8 billion acquisition of ChampionX last year and its reduced exposure to APS through the Palliser exit.
Evercore said these moves have repositioned the company towards the well head and production, reducing its overall risk profile. As a result, the firm raised its 2026 and 2027 EPS estimates for SLB to $3.00 and $3.40 from $2.97 and $3.30, respectively.
SLB's stock has surged by almost 18% since the beginning of 2026. Investors believe the company could benefit from the United States gaining access to Venezuela's massive oil reserves.
Venezuela's oil infrastructure is in a crumbling state after years of neglect. Rebuilding it will require significant investment and the kind of services SLB provides.
The oilfield services provider's technology would be crucial to boosting Venezuelan crude production. This could give SLB a strong pipeline of projects and contribute significantly to its revenue.
SLB N.V. engages in the provision of technology for the energy industry worldwide. It was included among 10 high-yield crude oil stocks to buy after Trump's blitz in Venezuela.