Precision Drilling (PDS – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Kurt Hallead from Benchmark Co. maintained a Buy rating on the stock and has a C$115.00 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Kurt Hallead has given his Buy rating due to a combination of factors that demonstrate Precision Drilling’s strategic positioning and positive outlook. The company’s increased utilization of Super Triples and Super Singles rigs in Canada indicates strong demand in the region, with plans to reactivate and upgrade rigs to cater to incremental demand and capitalize on Canadian heavy oil pad opportunities. Furthermore, the stability in customer demand and capital spending plans contribute to a constructive outlook for the company’s operations.
Additionally, Precision Drilling’s commitment to enhancing shareholder value is evident through its increased distribution target of 35-45% of free cash flow, up from the previous 25-35%. The company’s capital allocation strategy is further supported by its plans to reduce debt significantly by 2025 and 2027, aiming for a leverage ratio below 1x. These strategic financial decisions are likely to strengthen the company’s financial health and attractiveness to investors, underpinning Hallead’s Buy recommendation.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a C$130.00 price target.