The Nabors Industries stock story has shifted after a modest increase in analyst consensus price target from $40.25 to $41.63. This adjustment, influenced by recent analyst updates and company guidance, reflects a balance between optimism and continued caution within the industry. Stay tuned and find out how investors can stay informed as the story behind Nabors Industries continues to evolve.
Recent analyst commentary on Nabors Industries reflects a mix of optimism and caution, as several companies adjust their views and price targets in response to new corporate guidance and evolving industry dynamics.
🐂 Bullish takeaways
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Morgan Stanley, led by analyst Daniel Kutz, raised its price target on Nabors Industries from $50 to $55, while maintaining its Overweight rating. The revision highlights a favorable view of the company's prospects and reflects expectations that upcoming quarterly results and expectations will be broadly in line with consensus estimates.
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Analysts credit Nabors for its execution and ability to provide clear, updated guidance. This has supported confidence in the near-term prospects, despite continued volatility in the sector.
🐻 Bearish Takeaways
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Barclays raised its price target from $29 to $36, but still maintains its 'Underweight' rating. This indicates continued skepticism about the outperformance potential. The update was largely due to Nabors' revised guidance presented at their recent investor event.
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Piper Sandler, along with analyst Derek Podhaizer, raised its price target from $30 to $32 and also maintained its underweight stance. Their commentary points to ongoing cross-currents in the sector, including US land deflation, international slowdown and mixed offshore prospects as factors dampening enthusiasm for a significant upward revaluation.
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Both Barclays and Piper Sandler express concern that industry headwinds and current valuation could limit near-term upside potential.
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Caturus Energy has awarded Nabors Industries a multi-year contract to deploy its PACE-X Ultra X33 rig, recognized as the most powerful onshore drilling system in the United States. The agreement supports Caturus Energy's goal of achieving 1 billion cubic feet of gas equivalent per day production by 2029, concentrating operations in the Eagle Ford and Austin Chalk formations in Texas.
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Nabors' PACE-X Ultra These features set new industry performance standards and enable drilling in more technically advanced and challenging locations.
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The X33 rig features Cat Dynamic Gas Blending technology, which allows natural gas to be replaced by diesel while drilling. This approach is expected to reduce emissions and fuel costs and provide both environmental and operational benefits.
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Nabors Industries reported no share buybacks in the April to June 2025 quarter, completing its ongoing buyback program that began in August 2015. Over the life of the program, the company repurchased a total of 14,012,000 shares, representing $121.27 million.
