SLB (SLB) growth drivers are likely to coalesce in 2027 and beyond, anchored by a multi-year offshore upcycle, eventual recovery in the Middle East and progress in Venezuela, RBC Capital Markets said in a Sunday note.

The analysts said they expect 10% revenue growth in 2027 and 7% in 2028. RBC revised EBITDA estimates for 2026 and 2027 by +3% and -1% to $8.16 billion and $9.37 billion, respectively, compared with Wall Street view of $7.99 billion and $9.42 billion, according to the report

The bank also introduced its 2028 EBITDA estimate of $10.23 billion, versus Wall Street view of $10.36 billion, according to the note.

RBC said that SLBs' Q2 results added $4 billion of free cash flow to the firm's models and that it sees the company returning essentially all of its free cash flow to shareholders this year.

RBC maintained its outperform rating and $61 price target on the stock.

Price: 52.35, Change: -0.08, Percent Change: -0.14