
CLB Stock Forecast & Price Target
CLB Analyst Ratings
Bulls say
Core Laboratories is demonstrating strong financials with consistent year-on-year (YoY) growth in RD revenue and a substantial increase in free cash flow, rising from negative in Q3 2023 to positive $16.7 million. The company showcases improved fiscal management, as indicated by the lowered leverage ratio from 1.92x to 1.76x. Furthermore, the firm's Production Enhancement segment is anticipated to benefit from the rising U.S demand and the firm's RD revenue has historically successfully outpaced changes in the international rig count, indicating resilience and strong revenue generation capacity.
Bears say
Core Laboratories is facing negative growth in recent years (2017-19 and 2022), despite overall industry activity, especially in its Reservoir Description segment, leading to under-performance in RD revenue growth. The company's adjusted operating income dropped to $15.0 million recently from $16.0 million in the third quarter of 2023, and it anticipates a 2.5% sequential decrease in 1Q24 revenue ($122.0-128.0 million), which if fails to materialize could be a further detraction to the stock. Moreover, the potential risks including a significant drop in oil prices and a slower recovery in the U.S exacerbate the company's already weak financial position.
This aggregate rating is based on analysts' research of Core Laboratories Inc and is not a guaranteed prediction by Public.com or investment advice.
CLB Analyst Forecast & Price Prediction
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