Cactus price target lowered to $55 from $59 at Piper Sandler

Piper Sandler lowered the firm’s price target on Cactus to $55 from $59 and keeps a Neutral rating on the shares. The firm notes its 2024 numbers are being modestly decreased mainly on it taking a more conservative stance on Spoolable margins and growth. Pressure Control market share remains at a high level, and this likely improves further over the next 12 months. Through internal initiatives and new product development, Pressure Control margins could push into the mid 30% range at some point in 2024 vs the Q4 guide of 30%-32%. At this point, upside to numbers and the stock will likely need to come from Spoolables, in Piper’s opinion.