UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Precision Drilling

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Precision Drilling

, but lowered its price target from $13.00 to $11.00. BMO Capital noted, “We continue to believe that PD's shares are attractively valued at under 10x forward earnings and a 52% discount to replacement value. We think the shares continue to reflect multiples closer to a cyclical trough and are pricing in a much larger rollover in NA drilling activity than is likely to materialize. At current commodity prices, we believe drilling activity will be fairly range-bound, giving us some comfort heading into next year. That said, we do not see meaningful catalysts to move the share price higher in the short term in light of macro headwinds and the resultant uncertainty in E&P cash flows.” Precision Drilling closed on Thursday at $7.48.