2023-05-09 14:54:19 ET
Nabors Industries ( NYSE: NBR ) edges lower in Tuesday's trading as Barclays downgraded the stock to Equal Weight from Overweight with a $150 price target, slashed from $250.
Nabors ( NBR ) has done an impressive job generating free cash flow to reduce net debt, Barclays analyst Derek Podhaizer wrote, but while the company has expanded profitability in the Lower 48, "its exposure to weakening gas basins, private E&Ps, and spot market has led to underperformance."
At the same time, Nabors' ( NBR ) diverse international footprint, particularly in the Middle East and Latin Americawill allow the company to capture international inflection, according to Podhaizer.
Barclays sees NexTier Oilfield ( NEX ), Pro Petro ( PUMP ) and Patterson-UTI Energy ( PTEN ) as better positioned for this year's H2 among land drillers and pressure pumpers.
More on Nabors Industries:
- See financial and valuation comparisons to sector peers
- SA analysis: Nabors Industries: Back To Earth
- Stock price return: Down 32.5% YTD, down 23% in the past 12 months
For further details see:
Nabors downgraded by Barclays on exposure to weakening gas basins