Royal Bank Of Canada Forecasts Strong Price Appreciation for Nabors Industries (NYSE:NBR) Stock

Key Points

• Royal Bank of Canada raised its price target on Nabors from $91 to $120, implying roughly a 17.6% upside while keeping a "sector perform" rating.
• Nabors beat quarter estimates (EPS -$1.54 vs. -$2.25 expected) with revenue of $783.6M (+6.4% YoY), but it still shows a negative return on equity and analysts expect around -5.91 EPS for the fiscal year.
• Market view and ownership are mixed: the consensus is a "Hold" with an average target of $86.75 (2 Buys, 4 Holds, 2 Sells), even as institutional investors own 81.92% of the stock after sizeable position increases by several funds.

Nabors Industries (NYSE:NBR - Get Free Report) had its price objective hoisted by Royal Bank Of Canada from $91.00 to $120.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a "sector perform" rating on the oil and gas company's stock. Royal Bank Of Canada's price target points to a potential upside of 17.55% from the stock's current price.

NBR has been the topic of a number of other research reports. UBS Group set a $70.00 price target on shares of Nabors Industries in a report on Friday, February 13th. Barclays increased their target price on Nabors Industries from $50.00 to $65.00 and gave the company an "underweight" rating in a report on Wednesday, February 25th. Piper Sandler lifted their price target on Nabors Industries from $84.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday. Wall Street Zen downgraded Nabors Industries from a "buy" rating to a "hold" rating in a research note on Saturday, February 21st. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $100.00 target price (up from $80.00) on shares of Nabors Industries in a research note on Wednesday, April 15th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $86.75.

Nabors Industries Price Performance

Shares of NYSE NBR traded down $2.10 during mid-day trading on Thursday, reaching $102.09. 160,338 shares of the company traded hands, compared to its average volume of 383,292. The firm has a market cap of $1.63 billion, a PE ratio of 6.21 and a beta of 0.87. The company has a debt-to-equity ratio of 2.22, a current ratio of 1.56 and a quick ratio of 1.47. Nabors Industries has a fifty-two week low of $23.27 and a fifty-two week high of $105.17. The stock has a fifty day simple moving average of $82.09 and a 200-day simple moving average of $64.79.

Nabors Industries (NYSE:NBR - Get Free Report) last released its earnings results on Tuesday, April 28th. The oil and gas company reported ($1.54) EPS for the quarter, beating the consensus estimate of ($2.25) by $0.71. The business had revenue of $783.55 million during the quarter, compared to analyst estimates of $772.38 million. Nabors Industries had a net margin of 8.92% and a negative return on equity of 17.63%. The business's quarterly revenue was up 6.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.18 earnings per share. Equities research analysts anticipate that Nabors Industries will post -5.91 EPS for the current fiscal year.

Institutional Trading of Nabors Industries

A number of institutional investors and hedge funds have recently modified their holdings of NBR. Adage Capital Partners GP L.L.C. increased its holdings in Nabors Industries by 62.6% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 1,260,000 shares of the oil and gas company's stock valued at $68,418,000 after buying an additional 485,000 shares during the period. Two Sigma Investments LP raised its position in Nabors Industries by 232.2% in the third quarter. Two Sigma Investments LP now owns 185,841 shares of the oil and gas company's stock worth $7,595,000 after purchasing an additional 129,904 shares in the last quarter. Marshall Wace LLP lifted its stake in Nabors Industries by 446.9% during the fourth quarter. Marshall Wace LLP now owns 132,715 shares of the oil and gas company's stock worth $7,206,000 after purchasing an additional 108,447 shares during the period. Highbridge Capital Management LLC raised its holdings in shares of Nabors Industries by 26.9% in the 3rd quarter. Highbridge Capital Management LLC now owns 491,795 shares of the oil and gas company's stock worth $20,100,000 after buying an additional 104,219 shares in the last quarter. Finally, Millennium Management LLC boosted its stake in Nabors Industries by 846.5% in the 3rd quarter. Millennium Management LLC now owns 112,106 shares of the oil and gas company's stock valued at $4,582,000 after buying an additional 100,262 shares in the last quarter. 81.92% of the stock is currently owned by institutional investors.

Nabors Industries Company Profile

Nabors Industries Ltd. is a global oil and gas drilling contractor that provides land and offshore drilling rigs, drilling equipment and related services to energy companies around the world. The company's operations span two core segments: drilling and evaluation, which includes land‐based and platform drilling rigs as well as wellbore survey services, and wellbore technologies, offering pressure control equipment, downhole tools and specialized maintenance services. Nabors' integrated model combines rig operations with engineered products and field support, positioning it as a full‐service provider in the upstream sector.

The company maintains a diverse, modern fleet of automated and conventional drilling rigs and has pioneered advanced drilling technologies, including automated drilling controls and managed pressure drilling systems.

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