01:25 PM EDT, 04/19/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $53, up $1, reflects a 9.4x multiple of EV to projected '25 EBITDA, in line with SLB's historical average. We keep our stand-alone '24 EPS view at $3.54 and lift '25's by $0.10 to $3.69. Q1 EPS of $0.75 vs. $0.63, was in line with consensus. Q1 revenues rose 13% Y/Y. SLB reiterated its '24 guide; however, we remain wary of the int'l demand picture, given that Saudi Aramco stated in March it plans to lower capex by $40B between '24 and '28 after receiving notice in January '24 to keep its productive oil capacity at 12 mb/d (vs. 13 mb/d), which could impact SLB, in our view. In April, SLB announced it plans to acquire ChampionX (CHX 36 NR) in an all-stock deal valued at ~$8B. Each share of CHX is to be exchanged for 0.735 shares of SLB (15% premium based on April 1 close). We estimate the deal at an EV/EBITDA multiple of 10.4x (in line with CHX's historical average). Overall, we think SLB could benefit in the long term, as the newly acquired assets could boost its exposure to U.S. markets.