Barclays Upgrades Helmerich & Payne (HP) to Overweight

Barclays analyst Eddie Kim upgraded Helmerich & Payne (NYSE: HP) from Equalweight to Overweight with a price target of $25.00 (from $17.00).

The analyst comments: "H&P is the #1 land driller in the L48 with 141 active rigs, with a strong presence internationally with 62 active rigs (not including suspended KCA Deutag rigs) spread across various countries including Saudi Arabia (17), Oman (16) and Argentina (9), among others. Despite a very challenging 2025 which has seen shares decline 36% YTD (and -50% since announcement of the KCA Deutag acquisition 14 months ago in late July – a deal which closed in January), we believe the worst is now behind the company in both Saudi and US onshore markets – the primary culprits for the share underperformance this year. In L48, we think we’re close to reaching the trough in the rig count (if not reached already) and update our model to reflect a steady rebound in HP’s active rig count in FY26 from current levels, resulting in a flattish trajectory next year (FY26 over FY25). On the int’l front, while the KCA Deutag acquisition has been a huge disappointment and source of frustration for the company to say the least (27 of 36 active rigs in Saudi Arabia suspended), we think the rig suspensions are now in the rearview mirror with a strong potential for at least 10 suspensions to be lifted next year, especially given a recent tender from Saudi Aramco for 33 gas rigs in the Jafurah basin (16 of the 27 suspended rigs are capable of drilling for gas) – which would represent upside to our FY26 estimates."

For an analyst ratings summary and ratings history on Helmerich & Payne click here. For more ratings news on Helmerich & Payne click here.

Shares of Helmerich & Payne closed at $20.54 yesterday.

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