Nabor Industries' (NBR) Weak Q4 Opens Door for Restructuring - Goldman

February 20, 2013 12:35 PM EST Send to a Friend
Get Alerts NBR Hot Sheet
Price: $17.50 --0%

Rating Summary:
    17 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 1
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Yesterday Nabors Industries Ltd. (NYSE: NBR) reported Q4 results that were viewed as weak, and the stock traded lower as a result. However, the company might benefit from a restructuring, in the view of analysts at Goldman Sachs.

"NBR is undervalued versus peers and is trading at a 27% discount to NAV and at a 50bp discount to land drillers/SMID services on 2013 EV/EBITDA. We think this is a major change for a company that has historically traded at a premium," said analyst Waqar Syed.

He expects the company to close the gap thanks to improvements in cyclical factors and he also thinks a corporate restructuring would help unlock value.

"Weak 4Q12 operating results should also put pressure on management to take stronger restructuring steps," he said.

Goldman has a buy rating on Nabor Industries.

For an analyst ratings summary and ratings history on Nabors (NYSE: NBR) click here. For more ratings news on Nabors click here.

Shares of Nabors closed at $18.00 yesterday.


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