Nabor Industries' (NBR) Weak Q4 Opens Door for Restructuring - Goldman
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Price: $17.15 +0.41%
Rating Summary:
10 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
10 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade NBR Now!
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, with a 52 week range of $12.40-$22.73.
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"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, with a 52 week range of $12.40-$22.73.
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