Hold Rating Maintained as Near-Term Margin Headwinds Offset Longer-Term Normalization at HP

Analyst Marc Bianchi from TD Cowen maintained a Hold rating on Helmerich & Payne and increased the price target to $38.00 from $35.00.

Marc Bianchi has given his Hold rating due to a combination of factors reflecting both near‑term headwinds and longer‑term normalization. HP’s first‑quarter EBITDA was ahead of expectations, but this was largely driven by temporary relief in international startup costs that will shift into the second quarter, leading to guidance that sits modestly below prior Street expectations.

He also notes that while North America segment results and rig activity trajectories are broadly intact, pricing remains soft and subject to commodity‑driven pressure, limiting upside. International margins were flattered by deferred reactivation expenses and are expected to compress in the near term before improving later in FY26 as rigs reach steady‑state operations, and offshore trends are steady but not a major catalyst. Taken together, the setup supports stability rather than a compelling risk‑reward skew, justifying a Hold rating despite a modestly higher price target.

Bianchi covers the Energy sector, focusing on stocks such as Helmerich & Payne, Schlumberger, and Baker Hughes Company. According to TipRanks, Bianchi has an average return of 3.9% and a 47.84% success rate on recommended stocks.

In another report released on February 6, Evercore ISI also maintained a Hold rating on the stock with a $37.00 price target.