Seeking Alpha

Nabors Industries keeps rising but Morgan Stanley sees 30% more upside

  • Nabors Industries (NBR +3.4%) extends yesterday's big gains after posting strong Q4 results, and Morgan Stanley thinks shares can move a lot higher, upgrading NBR to Overweight from Equal Weight and raising its price target to $28 from $18.
  • NBR has underperformed peers Helmerich & Payne (HP) and Patterson-UTI (PTEN) by ~25% since Q3 2013 on poor operational execution and a muddled corporate strategy, but Stanley sees signs that NBR's  North America results have bottomed and execution has gained relative traction.
  • The firm also expects operational streamlining to gain momentum over coming quarters and is encouraged by the appointment of a new CFO.
Comments (1)
  • Seems a bit lofty to me with rev growth of -1.2% Y/Y & a p/e of 42. Agree CEO was optimistic for the short-term, but I like NOV, higher dividend, higher growth & reasonably priced.
    20 Feb, 12:54 PM Reply Like
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