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PD: Leadership And Auditor Transition Will Support Stronger Share Performance

US Gas Basins And LNG Canada Will Drive High-Efficiency Drilling

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PD
AnalystHighTarget
Not Invested
Published 30 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 11%
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AnalystHighTarget's Fair Value
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1Y
9.6%
7D
0.1%

Analysts have raised their price target for Precision Drilling from approximately $119 to $133 per share. This reflects expectations for faster revenue growth and a higher future earnings multiple, despite moderating margin assumptions and a slightly lower discount rate.

What's in the News

  • The Board approved the appointment of PwC as Precision Drilling’s new external auditor, replacing KPMG following a tender process and KPMG’s planned resignation effective October 23, 2025 (company filing).
  • KPMG will continue as auditor through the completion of its report on the December 31, 2025 financial statements, with no modified opinions issued on the 2023 or 2024 audited results (company filing).
  • From July 1, 2025 to September 18, 2025, Precision repurchased 121,364 shares for CAD 9 million, completing a total of 1,058,957 shares bought back for CAD 79 million under the September 13, 2024 program (company filing).
  • Dustin Honing was promoted to Chief Financial Officer after nearly 15 years with Precision across accounting, finance, operational support, and investor relations roles (company announcement).
  • The Board appointed Carey Ford as Chief Executive Officer and director as part of a planned succession, succeeding long-time CEO Kevin Neveu following his retirement (company announcement).

Valuation Changes

  • The fair value estimate increased from approximately CA$119.48 to CA$133.00 per share, reflecting a moderate upward revision in intrinsic value.
  • The discount rate decreased from about 7.93 percent to 7.06 percent, a modest reduction that raises the present value of projected cash flows.
  • The revenue growth assumption rose significantly from roughly 1.87 percent to 3.36 percent, indicating higher expectations for top line expansion.
  • The net profit margin forecast declined notably from about 9.24 percent to 6.08 percent, implying lower expected profitability on each dollar of revenue.
  • The future P/E multiple expanded materially from approximately 9.1x to 14.6x, signaling a higher expected valuation on forward earnings.

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Disclaimer

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