- 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.
Nabors Industries keeps rising but Morgan Stanley sees 30% more upside
Feb 20 2014, 12:44 ET