Benchmark Co. analyst Kurt Hallead has maintained their neutral stance on HP stock, giving a Hold rating on February 7.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Kurt Hallead has given his Hold rating due to a combination of factors affecting Helmerich & Payne’s market position. Despite facing temporary challenges in Saudi Arabia, the company is strategically positioned to enhance its market presence in the Middle East, particularly through the acquisition of KCA. This merger is expected to improve profitability in international and offshore drilling operations.
However, the company’s recent earnings shortfall and a subdued outlook for the fiscal second quarter are attributed to unexpected start-up costs associated with new contracts in Saudi Arabia. While US land rig pricing remains stable, cash margins are anticipated to decline slightly due to rig turnover. The company aims to maintain a stable rig count in the US market despite a flat activity forecast. Additionally, Helmerich & Payne is projected to convert a significant portion of its EBITDA into free cash flow by FY25 and FY26, reflecting a cautious but optimistic financial outlook.
In another report released on February 7, Evercore ISI also maintained a Hold rating on the stock with a $36.00 price target.