Helmerich & Payne resumed with an Underweight at Morgan Stanley

Morgan Stanley resumed coverage of Helmerich & Payne with an Underweight rating and $27 price target The firm contends that the market may be underappreciating the depth and duration of conventional land drilling market activity pressure in Saudi Arabia, which is now H&P’s biggest market outside of the U.S. However, recently launched Middle East unconventional drilling campaigns may offer less upside than the firm had previously thought and U.S. land drilling activity and pricing/margin upside may be more limited than consensus expectations, the analyst tells investors.