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Nervous markets await NvidiaThis summary was created by AI, based on 13 opinions in the last 12 months.
Precision Drilling (PD-T) has faced significant challenges amidst a downturn in the oil and gas service sector, with decreasing capital expenditures due to low oil prices and market uncertainties. Many analysts express cautious optimism, highlighting the company's attractive valuation metrics, including a low trading multiple at 3x EBITDA and a notable free cash flow yield of around 23-32%. However, concerns about overall industry weakness, particularly in natural gas, persist, as lower energy prices lead to reduced drilling activity. Despite these challenges, some experts point to potential long-term benefits, particularly from Canada's strong oil and gas market and upcoming catalysts like LNG Canada. While there is a divergence of opinions on the immediate outlook, several analysts identify the stock’s current valuation as appealing, despite a range of risk factors associated with the drilling business.
More drilling 'should' result in more activity for the service sector, of course. PD is very cheap and seeing fundamental improvement. We would be comfortable in the $76 to $77 range.
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Still likes it but not as much, as drilling is weaker than thought. Selloff in oil, drop in rig count. More efficient drilling ultimately means less work. Continues to de-lever. Everyone's excited about natural gas. Massive exposure to nat gas in Canada, which has better dynamics than US. About a 3.7% weight for him.
Consolidating, as are a lot of stocks in the sector. Attempting to break out, wrestling with the older highs of $120. Longer term, likes oil. Hard to say if this one will break out. If you're patient, you'll probably be rewarded. But also a chance could tumble back into the trading tunnel. It's a flip of the coin.
Modest multiple. Trades today at 22-23% free cashflow yield at modest activity levels; forward free cashflow yield of 26%. Offers strong optionality for better activity levels in 2025, predicated on higher nat gas price. No interest in services right now, so that's one of the best value propositions. No dividend.
(Analysts’ price target is $127.38)He prefers drilling to pumping because the former has far fewer competitors and pricing has been firm amid weak nat gas prices. The Canadian market is much stronger than the U.S. It boasts 31% free cash flow yield in 2025, and they will return 30-40% of that. Will hit their debt targets. he owns nearly 10% of the company. The outlook for LNG is positive. He sees 137% upside.
(Analysts’ price target is $124.11)Ridiculously cheap. Investors don't realize how much debt they have paid down. Much upside ahead. 26% free cash flow yield then 30% this and next year. They will return 30-40% of that cash flow to investors, but will tell them it should be 50%. It trades at a discount to US peers. has 100% upside.
(Analysts’ price target is $123.39)Precision Drilling is a Canadian stock, trading under the symbol PD-T on the Toronto Stock Exchange (PD-CT). It is usually referred to as TSX:PD or PD-T
In the last year, 9 stock analysts published opinions about PD-T. 3 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Precision Drilling.
Precision Drilling was recommended as a Top Pick by on . Read the latest stock experts ratings for Precision Drilling.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
9 stock analysts on Stockchase covered Precision Drilling In the last year. It is a trending stock that is worth watching.
On 2025-05-05, Precision Drilling (PD-T) stock closed at a price of $57.06.
Drilling services to energy (oil & gas) producers. This name weakens when energy companies decide to pull back on drilling; they do that when the commodity's weak and there's less $$ to spend. Very volatile, and that's why she stays away.
Gets swayed by underlying commodity prices and the energy sector, in general, has come off. OPEC has indicated its cutbacks won't continue; a bizarre move in the face of weaker demand, which suggests they need revenue from energy volumes to drive their economies.