Barclays Maintains an 'Equalweight' on Nabors (NBR); International Recovery Pushed Out Further
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Price: $75.13 -6.24%
Rating Summary:
11 Buy, 17 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
11 Buy, 17 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Barclays maintains an 'Equalweight' on Nabors (NYSE: NBR) price target of $23.00.
Barclays analyst says, "Despite the delay in the international recovery for Nabors, we are expecting a significant ramp starting mid-2012 to meaningfully contribute to earnings-especially given the company's leverage to two key growth areas, Saudi Arabia and Iraq. In addition, while the U.S. land market might be topping out in the near-term, we believe the large decline in NBR shares over the last few months more than reflects an expected decline in the rig count. We think a moderation in the rig count is more likely than a full-blown downturn as E&P budgets are reset in a lower cash flow environment, and we maintain our 2-Equal Weight rating."
"We are adjusting our 4Q11 EPS estimate to $0.49 (from $0.59) reflecting lower income for the International segment and slower growth in the U.S. Lower 48 Land Drilling rig count, partially offset by increased U.S. Pressure Pumping income and a strong rebound in Canada. We are lowering our 2012-2013 EPS estimates to $2.50 and $3.15 (from $2.90 and $3.60), respectively to reflect the delay of the international recovery until 2Q12 and slower growth for the U.S. Lower 48 Land Drilling segment."
For more ratings news on Nabors click here and for the rating history of Nabors click here.
Shares of Nabors closed at $17.35 yesterday.
Barclays analyst says, "Despite the delay in the international recovery for Nabors, we are expecting a significant ramp starting mid-2012 to meaningfully contribute to earnings-especially given the company's leverage to two key growth areas, Saudi Arabia and Iraq. In addition, while the U.S. land market might be topping out in the near-term, we believe the large decline in NBR shares over the last few months more than reflects an expected decline in the rig count. We think a moderation in the rig count is more likely than a full-blown downturn as E&P budgets are reset in a lower cash flow environment, and we maintain our 2-Equal Weight rating."
"We are adjusting our 4Q11 EPS estimate to $0.49 (from $0.59) reflecting lower income for the International segment and slower growth in the U.S. Lower 48 Land Drilling rig count, partially offset by increased U.S. Pressure Pumping income and a strong rebound in Canada. We are lowering our 2012-2013 EPS estimates to $2.50 and $3.15 (from $2.90 and $3.60), respectively to reflect the delay of the international recovery until 2Q12 and slower growth for the U.S. Lower 48 Land Drilling segment."
For more ratings news on Nabors click here and for the rating history of Nabors click here.
Shares of Nabors closed at $17.35 yesterday.
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