Market Overview

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

Related PDS
Pier 1, BioMarin, HomeAway & Oracle Lead Wednesday's After-Hours Movers
Earnings Scheduled For April 27, 2015

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Precision Drilling (NYSE: PDS), 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.

Latest Ratings for PDS

Jul 2015ScotiaUpgradesSector PerformOutperform
May 2015JP MorganInitiates Coverage onNeutral
Apr 2015Scotia CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for PDS
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Price Target Analyst Ratings


Related Articles (PDS)

Get Benzinga's Newsletters