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Wall Street’s Forecast for Nabors Industries before Its 3Q17 Earnings

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Oct. 19 2017, Updated 1:07 p.m. ET

Wall Street’s forecast for Nabors Industries

In this final part of the series, we’ll look at the recent Wall Street analysts’ forecasts for Nabors Industries (NBR) before its 3Q17 earnings. On October 12, 2017, ~67% of the Wall Street analysts tracking Nabors Industries rated it as a “buy” or some equivalent.

Approximately 33% rated the company as a “hold,” and none of the sell-side analysts rated it as a “sell” or an equivalent.

In comparison, 68% of the analysts tracking Patterson-UTI Energy (PTEN) rated it as a “buy” or some equivalent on October 12, while approximately 29% of analysts tracking it rated it as “hold.” The rest of the sell-side analysts rated PTEN as a “sell.”

Nabors Industries comprises 3.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). The S&P 500 Index (SPX-INDEX) increased 20% in the past year versus a 45% decline in NBR’s stock price and a 19% fall in XES during this period.

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Analysts’ rating changes for NBR

From July 12, 2017, to October 12, 2017, the percentage of analysts recommending a “buy” or some equivalent for NBR remained unchanged at 67%. Analysts’ “hold” recommendations also remained unchanged for NBR during this period. A year ago, ~67% of the sell-side analysts recommended a “buy” for NBR.

Analysts’ target prices for NBR

Wall Street analysts’ mean target price for NBR on October 12 was $10.20. NBR is currently trading at ~$7.30, implying an ~40% upside at its current mean price. Analysts’ average target price for NBR was $10.60 a month ago.

Analysts’ target prices for NBR’s peers

The mean target price surveyed among the sell-side analysts for Helmerich & Payne (HP) was $50.30 on October 12. HP is currently trading at ~$51.00, implying an ~1% downside at its current price.

The mean target price surveyed among the sell-side analysts for NCS Multistage Holdings (NCSM) was $30.10 on October 12. NCSM is currently trading at ~$21.00, implying a 43% upside at its current price.

You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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