Investment bank Evercore ISI released a research report, upgrading SLB Ltd's (SLB.US) rating from "In-Line" to "Outperform" and raising its price target from $38 to $54. Simultaneously, it downgraded Halliburton's (HAL.US) rating from "Outperform" to "In-Line," while increasing its price target from $28 to $35. Evercore analyst Stephen Richardson and his team noted that the outlook for SLB Ltd is clearer than it has been in over two years. The company has reduced its exposure to the APS (Asset Performance Solutions) business by completing the acquisition of ChampionX and exiting the Palliser project, shifting its strategic focus towards the wellhead and production segments, thereby lowering the firm's overall risk profile. Evercore anticipates that international oilfield spending in 2026, particularly in the Middle East, will surpass that in North America. This trend favors SLB Ltd's business structure, as it holds a dominant position in the Middle East and other key international markets, while its operations in the US land market are relatively limited. Based on the view that increased international activity will benefit the company's Reservoir Performance and Drilling & Construction segments, Richardson's team raised their EPS forecasts for SLB Ltd for 2026 and 2027 to $3.00 and $3.40, up from $2.97 and $3.30, respectively. For Halliburton, Evercore believes its exposure to North American operations remains a key constraint on the company's development. Compared to other large oilfield service peers, Halliburton's reliance on US market activity is significantly higher: approximately 40% of its revenue comes from the North American market, whereas the comparable figures for SLB Ltd and Baker Hughes (BKR.US) are about 20% and 26%, respectively, with the latter two benefiting from a broader international and offshore business portfolio. Evercore holds a pessimistic outlook for North American oil and gas spending in 2026, expecting further market slowdown against a backdrop of ongoing industry consolidation in the US, improved capital efficiency, and peaking onshore productivity. In this environment, despite Halliburton's ongoing efforts to optimize equipment and control costs, Richardson's team still believes the domestic US pressure pumping services business will continue to exert pressure on the company.