Citi upgrades Cactus to Buy on improving Middle East outlook

Citi upgraded Cactus (WHD) to Buy from Neutral with a price target of $55, up from $45. The firm upgraded the stock as part of its 2026 outlook for the oil and gas equipment and services group. Citi believes the industry is in the bottom of a two-year downcycle. The lack of negative estimate revisions could drive better share performances in 2026, the analyst tells investors in a research note. Citi cites an improving Middle East outlook and synergies from the Baker Hughes Surface Pressure Control Business acquisition for the upgrade of Cactus.