
Nabors Industries (NBR) Stock Forecast & Price Target
Nabors Industries (NBR) Analyst Ratings
Bulls say
Nabors Industries Ltd has reported a 6% quarter-over-quarter increase in EBITDA, indicating strong operational performance across its segments. The company's International Drilling segment remains a key growth driver, with positive expectations for rig counts to trend upward, supported by a solid technology portfolio and a favorable joint venture. Furthermore, potential catalysts such as higher commodity prices and improved service pricing are anticipated to enhance E&P spending, leading to increased drilling activity and better profit margins for the company.
Bears say
Nabors Industries is expected to trade at a discount to its peers primarily due to its higher financial leverage, with a projected FY24E net debt/EBITDA ratio of 2.2x compared to the peer average of 1.1x, and lower free cash flow (FCF) margins of 5% versus 11% among peers. The company's average rig count has decreased by 1% quarter-over-quarter, reflecting challenges in actively maintaining operational efficiency, while a significant upcoming debt maturity of $2.5 billion over the next seven years raises concerns about its balance sheet sustainability. Additionally, despite a strong international presence contributing notably to revenue, the overall financial metrics indicate a riskier profile, suggesting significant headwinds for Nabors Industries in achieving near-term financial stability and shareholder value.
This aggregate rating is based on analysts' research of Nabors Industries and is not a guaranteed prediction by Public.com or investment advice.
Nabors Industries (NBR) Analyst Forecast & Price Prediction
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