08:40 AM EDT, 04/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $76, down $5, reflects a 1.1x multiple of 2025 cash flows, below NBR's historical average. We think a discount is merited due to NBR's net debt-to-capital ratio of 75% (vs. peer average of 15%). We widen our 2024 LPS by -$3.82 to -$7.20, but narrow 2025's by $0.35 to -$2.07. Q1 LPS of -$4.54 vs. -$1.43, missed consensus by -$2.76, driven by weaker U.S. revenues (-23%). NBR's Lower 48 rig count (71 rigs) fell 19% Y/Y, while rig utilization (63%) dropped by sixteen percentage points. For 2024, we think NBR could face headwinds, given it expects its Lower 48 rig count to fall by six rigs Y/Y, which could place downward pressure on dayrates. In addition, we are wary of its newbuild program with Saudi Aramco, given that several offshore drilling firms reported the temporary suspension of its rig operations in Saudi Arabia (per NBR). We think that Saudi Arabia could take further measures to blunt further demand weakness, including suspending onshore drilling, which could impact NBR.