UPDATE: Wells Fargo Initiated Coverage of Nabors Industries

In a note released Wednesday morning, Wells Fargo initiated coverage on Nabors Industries

with an Outperform rating and a valuation range of $28-32. The upgrade is saddle on the belief that Nabors' hares are undervalued given the growth prospects of the U.S.land rig fleet and pressure pumping business. Looking to the next twelve months, Wells Fargo commented, "As NBR benefits from higher rates and takes delivery of additional newbuilds over the next 12 months, we forecast NBR's margin/rig day to increase from $10,031 in Q2 to average almost $11,300 in 2015 and $12,000 in 2016." In a look at the company's performance, Wells Fargo is predicting an EPS of $1.17 in 2014 and $2.20 in 2015.