Nabors Industries Ltd. (NBR) - Bear of the Day

By Zacks Equity Research,

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Based upon the number of near-term challenges, we are maintaining our Underperform recommendation on Nabors Industries Ltd. ( NBR ) shares. The land-drilling contractor is facing headwinds in the pressure pumping market on the back of collapsing prices and lower utilization. The recent weakness in the North American onshore rig count has also been a negative.

As usual, we remain concerned about weak natural gas fundamentals, which are likely to limit the company's ability to generate positive earnings surprises. Nabors' fairly debt-heavy balance sheet also remains an issue.

Considering these factors, we see Nabors as a risky bet from which ordinary investors should exit or avoid. This is corroborated by our $12 price objective, which is based on a 2013 P/E multiple of 7.8X.

NABORS IND (NBR): Free Stock Analysis Report

NABORS IND (NBR): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks
Referenced Stocks: NBR

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