Cactus upgraded to Neutral at BofA after 32% year-to-date pullback

As previously reported, BofA analyst Saurabh Pant upgraded Cactus (WHD) to Neutral from Underperform with a price target of $40, up from $39. The firm, which sees Cactus as better placed to pass tariffs and diversify beyond China, feels “comfortable” in Q2 to Q3 being the margin trough for the Pressure Control business and believes segment margins should begin to recover, the analyst tells investors. The firm, which notes Cactus has declined 32% year-to-date, calls this valuation “pretty much the lowest since its IPO in 2018.”