CA - Precision Drilling: The Seagulls Are Missing A Bet

2024-03-14 11:30:00 ET

Summary

• Precision Drilling is expected to face a decline in the Canadian rig count as the spring thaw approaches.
• Analysts have downgraded their EPS forecasts for PDS in Q2 2024, despite a bullish outlook for Q1 2024.
• PDS stock is currently sitting just below its resistance line, indicating potential downside risk.
• We rate PDS as a sell in anticipation of seasonal market softness.

Introduction

Last December, I made a case for Precision Drilling Corp . ( PDS ) in the upper $40s. In late February, it rallied to the lower $60s. I think it is time to take the chips off the table on this Canadian driller, as the spring thaw approaches. It looks like the rig count has bent the curve for this season....

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