Analyst Charles Minervino of Susquehanna maintained a Hold rating on Nabors Industries (NBR – Research Report), reducing the price target to $45.00.
Charles Minervino has given his Hold rating due to a combination of factors related to Nabors Industries’ recent acquisition and financial outlook. The acquisition of Parker Wellbore, which includes Quail Tools and additional rigs, is expected to contribute positively to the company’s EBITDA and free cash flow in the first year. However, despite these potential benefits, the issuance of 4.8 million new shares as part of the transaction has been factored into the updated financial model, which may dilute earnings per share.
Minervino’s Hold rating also reflects a cautious approach given the revised price target of $45, down from the previous $53. This adjustment suggests a more conservative outlook on the stock’s potential upside, considering the current market conditions and the integration risks associated with the acquisition. The updated EBITDA estimates for 2025 and 2026, while positive, indicate a need for careful monitoring of the company’s performance in the coming years.
Minervino covers the Energy sector, focusing on stocks such as Nabors Industries, Baker Hughes Company, and TechnipFMC. According to TipRanks, Minervino has an average return of -2.6% and a 42.57% success rate on recommended stocks.
In another report released on February 26, Citi also maintained a Hold rating on the stock with a $50.00 price target.