Street View: SLB seen gaining on digital edge, strong Middle East recovery upside

** Oilfield services company SLB's SLB.N first-quarter profit fell 5.6% to $752 million as disruptions from the Iran war forced it to rein in operations in a key oil-producing region

** SLB said it is seeking to recover higher costs from customers after the U.S.-Israeli war on Iran and the resulting closure of the Strait of Hormuz disrupted global supply chains

BROKERAGES BACK SLB DIGITAL OFFERINGS

** Stifel raises price target to $61 from $56

** Says SLB's leverage to the Middle East is a short-term headwind, and strength in other markets will help offset issues, resulting in flat Q2 earnings

** Jefferies raises PT to $65 from $58

** We like SLB's leading technological and digital offerings, along with strategic investments in the new energy portfolio targeted to diversify from the traditional oil-based business - Jefferies

** Morningstar (Fair Value: $51) says SLB likely to outperform peers as its digital tools help customers run operations more efficiently, cut costs, and make better decisions, giving a competitive edge

** Adds, "SLB should disproportionately benefit from a production volume recovery in the Middle East"

 (Reporting by Pranav Mathur in Bengaluru)

 ((Pranav.Mathur@thomsonreuters.com;))

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