UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Helmerich & Payne

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Helmerich & Payne

, and raised its price target from $65.00 to $70.00. BMO Capital Markets noted, “H&P posted operating EPS of $1.40 versus our consensus-aligned $1.28. GAAP was $1.48 and included 8c of gains on asset sales and investments. NA Land drove the beat with revenues surpassing expectations by 4% (flat q/q) and daily average margins falling only $299 with the majority of the decline attributable to lower early termination fees than in prior quarters. We had expected something >$500 but better cost management provided the pickup. US Offshore and Int'l were also stronger, leading to an overall top line that was 4% higher than our model. A tax rate ~130bp lower also chipped in ~3c. Perhaps most surprising, commentary around NA spending bucked recent survey results noting E&P spending plans appear poised for an increases as customers find value in recent technological gains and efficiency pickups. An additional three new build rig contracts in the quarter complemented this outlook. We continue to recommend leaders; HP is one.” Helmerich & Payne closed on Thursday at $64.34.