Jefferies reaffirms its 'buy' recommendation and $71 price target on SLB, welcoming the announcement of the oilfield services group's acquisition of ChampionX, a 'constructive step to strengthen its core business'.

According to the broker, this acquisition, worth around $7.75 billion and carried out entirely through a share swap, increases SLB's exposure to the production business, deemed 'less cyclical and less capital-intensive'.

We expect it to be well received, despite the initial reaction to the premium. The synergies targeted seem reasonable, given SLB's complementary businesses and positioning", he adds.

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