Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Morgan Stanley (NYSE:MS) updated its outlook on Helmerich & Payne stock (NYSE:HP), increasing the price target to $29.00 from the previous $25.00 while maintaining an Equalweight rating on the shares. The revision reflects adjustments in the firm’s revenue and earnings per share (EPS) estimates for fiscal years 2025-2026.
The firm’s analysts have adjusted their revenue and EPS estimates for Helmerich & Payne for the next two fiscal years, noting an increase of 3-11% compared to their published model. However, these estimates remain slightly below the forecasts set before April 8th. The analysts observed that the projected revenue for the April and July quarters has improved due to a pull-forward effect, although the actual figures came in marginally lower than expected.
The new price target of $29 is based on an 8x multiple of Morgan Stanley’s revised $3.67 EPS projection for fiscal year 2026. Despite the increased price target, the firm has decided to keep its Equalweight rating on Helmerich & Payne stock.
Helmerich & Payne has not publicly responded to Morgan Stanley’s updated price target and rating affirmation. The price target change comes amid a series of financial assessments and forecasting by analysts in the energy sector, where Helmerich & Payne operates.
Investors and market watchers typically follow such updates closely, as they can influence market perceptions and investment decisions regarding the stock in question. Helmerich & Payne’s stock performance following this update will be observed in the context of the broader market and industry-specific developments.
In other recent news, Helmerich & Payne announced its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $0.88, compared to the forecasted $0.66. The company also reported revenue exceeding $1 billion, which was higher than the anticipated $992.2 million. Despite these positive results, Helmerich & Payne’s stock experienced a slight decline of 1.92% in after-hours trading. Additionally, the company has completed its acquisition of KCA Deutag, which is expected to bolster its long-term growth strategy. Meanwhile, Citi analysts downgraded Helmerich & Payne’s stock from Buy to Neutral, reducing the price target to $19 due to anticipated declines in rig counts and rates. This follows a similar downgrade for Patterson-UTI (NASDAQ:PTEN) Energy by Citi, with the stock also downgraded to Neutral and the price target lowered to $19.00. JPMorgan also reduced its price target for Helmerich & Payne to $25, maintaining a Neutral rating, citing weaker-than-expected forecasts and rig suspensions by Saudi Aramco (TADAWUL:2222). These developments reflect ongoing market challenges and adjustments within the energy sector.
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