Helmerich & Payne price target lowered to $35 from $41 at RBC Capital

RBC Capital analyst Keith Mackey lowered the firm’s price target on Helmerich & Payne to $35 from $41 and keeps a Sector Perform rating on the shares. The company’s organic and inorganic International expansion is aimed at long-term growth in key markets, but HP is experiencing issues with higher activation costs on its Saudi rig transfers, and lower EBITDA generation from its acquired KCA business, even though both of these issues may prove short-term in nature, the analyst tells investors in a research note.