AnalystConsensusTarget updated the narrative for NBR

Analysts have raised their average price target for Nabors Industries to $40.25 from $38.11, citing updated company guidance and an evolving industry outlook as key factors behind the increase.

Analyst Commentary

Recent street research highlights a range of perspectives on Nabors Industries, reflecting both optimism and ongoing caution regarding the company's near-term trajectory and broader sector trends.

• Bullish analysts have raised price targets in response to Nabors Industries' updated guidance and strategic moves. This indicates improved confidence in management's growth and execution capabilities.
• Upward target revisions point to the potential for earnings improvement, particularly if the company can capitalize on efficiency gains and adapt to the evolving market landscape.
• Some analysts recognize Nabors' ability to navigate industry headwinds and suggest it remains well positioned relative to certain peers amid sector changes.

• Bearish analysts continue to see challenges in the U.S. land drilling segment, forecasting a decline in rig counts and downward pressure on pricing for related services and products.
• There are persistent crosscurrents in the market, including international deceleration and a mixed offshore outlook. These factors may limit near-term profitability and growth.
• Concerns about a negative rate-of-change environment for the rest of 2025 suggest that broader industry pressures could act as a headwind for Nabors Industries’ valuation momentum.
• Ongoing macro factors, such as lower oil prices and increased competition, are seen as potential risks to the company’s ability to drive sustainable outperformance.

What's in the News

• Caturus Energy has signed a multi-year contract with Nabors Industries for the deployment of the PACE-X Ultra X33 rig, which is the most powerful onshore drilling system currently operating in the United States. The collaboration aims to ramp up gas production and drive innovation in high-spec drilling technology. (Key Developments)
• The PACE-X Ultra X33 rig is equipped with a one million-pound mast rating, can handle up to 35,000 feet of racking capacity, and includes three 2,000-horsepower mud pumps for higher pressure performance. This rig incorporates Cat Dynamic Gas Blending (DGB) technology, allowing a switch from diesel to natural gas for improved fuel efficiency and reduced emissions. (Key Developments)
• From April 1, 2025 to June 30, 2025, Nabors Industries did not repurchase any shares, concluding its previously announced buyback with a total of 14,012,000 shares repurchased for $121.27 million since August 2015. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen from $38.11 to $40.25, reflecting a moderate increase in perceived fair value.
• Discount Rate has decreased slightly from 8.29% to 8.17%, indicating a marginal reduction in perceived risk or cost of capital.
• Revenue Growth projection has edged up marginally from 4.52% to 4.53%. This suggests a slightly more optimistic outlook for sales expansion.
• Net Profit Margin estimate has dipped modestly from 7.03% to 7.00%. This points to a minor reduction in projected profitability.
• Future P/E ratio forecast has risen from 3.38x to 3.57x, which indicates expectations for somewhat higher valuation multiples moving forward.