Market Overview

UPDATE: Goldman Sachs Upgrades Nabors Industries to Conviction Buy on Valuation Catalysts

Related NBR
UPDATE: Wells Fargo Initiates Coverage On Nabors Industries Ltd.
SeaDrill (SDRL) Falls: Stock Goes Down 6%
Energy Stocks Move Higher as Oil Spikes (Fox Business)

Goldman Sachs upgraded Nabors Industries (NYSE: NBR) from Neutral to Conviction Buy and raised the price target from $17.00 to $23.00.

Goldman Sachs commented, "NBR is a key provider of shale exploitation services globally, but is trading at a 34% discount to our $24.75/share NAV estimate. We see catalysts to narrow the valuation gap, including: (1) Inflecting NAM rig activity leading to multiple expansion as in prior cycles; (2) margin inflection, as NBR is significantly under-earning with 4Q12E margins below mid-2009 levels; no other peer is that low; (3) cash release to shareholders from high FCF and stock underperformance; (4) corporate restructuring; and (5) around 15%+ IRR on our LBO screen."

Nabors Industries closed at $17.16 on Wednesday.

Latest Ratings for NBR

DateFirmActionFromTo
Sep 2014Wells FargoInitiates Coverage onOutperform
Sep 2014KeyBancInitiates Coverage onBuy
Jul 2014Deutsche BankMaintainsBuy

View More Analyst Ratings for NBR
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (NBR)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters