Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Freedom Capital Markets initiated coverage on Precision Drilling (NYSE:PDS) with a Buy rating and a price target of $106.00 on Thursday. According to InvestingPro analysis, the company appears undervalued based on its comprehensive Fair Value model, supporting the bullish outlook.
The research firm cited Precision Drilling’s "compelling profile supported by strategic equipment positioning, disciplined capital allocation, geographic and commodity diversification, and ongoing undervaluation" as key factors behind the rating.
Precision Drilling provides drilling and well services to the global energy sector, with approximately 85% of its revenue generated from Contract Drilling Services in Canada, the United States, and the Middle East.
The remaining 15% of the company’s revenue comes from Completion and Production Services, according to Freedom Capital Markets.
The firm noted that Precision Drilling operates Super Series rigs and leverages Alpha digital technologies, while its performance is primarily tied to rig utilization, which is driven by crude oil and natural gas prices and seasonal weather conditions. With EBITDA of $363.67 million and management actively buying back shares, the company is positioned for its next earnings report on October 22, 2025.
In other recent news, Precision Drilling Corporation reported its Q2 2025 earnings, surpassing expectations significantly. The company posted an earnings per share (EPS) of $1.21, notably higher than the forecasted $0.30. Revenue for the quarter came in at $407 million, slightly above the anticipated $400.5 million. These results have caught the attention of analysts and investors, contributing to a positive market reaction. The earnings surprise has been a focal point, as it reflects the company’s stronger-than-expected financial performance. Analyst firms may take these results into account for future evaluations of the company. The recent developments highlight Precision Drilling’s ability to exceed market expectations. Investors are closely watching how these results might influence future analyst ratings.
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