Expecting Continued Pressure On Oil Prices, Argus Maintains A Hold On Nabors Industries

Argus maintained its Hold rating on Nabors Industries Ltd. (NYSE: NBR) as it expects crude oil prices to remain low, while anticipating reduced drilling activity over the next several quarters.

"We expect this oilfield services company to post an adjusted loss in both 2016 and 2017," analyst David Coleman wrote in a note.

Meanwhile, Coleman narrowed his 2016 loss estimate to $1.57 from $1.66 per share and 2017 loss estimate to $1.10 from $1.26 per share. The consensus forecast calls for a loss of $1.29 per share for 2016.

Despite the company benefiting from international diversification, the analyst prefers to remain cautious given the challenging industry outlook.

NBR shares have underperformed over the past three months, declining 5.1 percent while the S&P 500 has risen 3.4 percent.

At time of writing, shares of Nabors were up 0.38 percent to $10.48.