Marc Bianchi, an analyst from TD Cowen, maintained the Hold rating on Helmerich & Payne. The associated price target was raised to $27.00.
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Marc Bianchi’s rating is based on a combination of factors that reflect both positive and cautious elements in Helmerich & Payne’s performance and outlook. The company’s third-quarter results demonstrated strong North American Solutions (NAS) margins and early signs of international stabilization, which were encouraging. Additionally, the guidance for the fourth quarter was better than anticipated, contributing to the stock’s relative outperformance. However, despite these positive indicators, the uncertain macroeconomic environment prompts a more cautious stance, leading to the Hold rating.
Internationally, while there were improvements in margins, the outlook is tempered by the impact of Saudi suspensions and the expected rig count. The offshore segment remains a steady contributor, but significant growth appears to be further out. Furthermore, while the company has identified cost savings and expects higher debt repayment, near-term earnings pressures persist. These mixed signals, combined with a conservative valuation, underpin the decision to maintain a Hold rating.
According to TipRanks, Bianchi is an analyst with an average return of -0.1% and a 43.41% success rate. Bianchi covers the Energy sector, focusing on stocks such as NOV, Helmerich & Payne, and Tenaris SA.
In another report released on August 14, Piper Sandler also maintained a Hold rating on the stock with a $21.00 price target.