Nabors Industries Ltd. (NBR)
by Zacks Equity Research
November 02, 2012 | Comments :
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Based upon the number of near-term challenges, we are maintaining our Underperform recommendation on
Nabors Industries Ltd. (
NBR) shares. The land-drilling contractor is facing headwinds in the pressure pumping market on the back of collapsing prices and lower utilization. The recent weakness in the North American onshore rig count has also been a negative.
As usual, we remain concerned about weak natural gas fundamentals, which are likely to limit the company's ability to generate positive earnings surprises. Nabors' fairly debt-heavy balance sheet also remains an issue.
Considering these factors, we see Nabors as a risky bet from which ordinary investors should exit or avoid. This is corroborated by our $12 price objective, which is based on a 2013 P/E multiple of 7.8X.
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext. 9339.
As usual, we remain concerned about weak natural gas fundamentals, which are likely to limit the company's ability to generate positive earnings surprises. Nabors' fairly debt-heavy balance sheet also remains an issue.
Considering these factors, we see Nabors as a risky bet from which ordinary investors should exit or avoid. This is corroborated by our $12 price objective, which is based on a 2013 P/E multiple of 7.8X.
Read the full Analyst Reporton NBR