CIBC Capital Markets maintained its outperform rating on the shares of Precision Drilling (PD.TO, PDS) while raising its price target to C$160.00 from C$150.00 following the company's first-quarter results.
"Management has indicated visibility towards an inflection point for U.S. rig activity through H2/26, supported by a strong outlook for crude oil pricing, along with increased activity in dry gas basins. We believe PD's share price weakness will prove to be temporary, particularly as we move through Q2/26 and the company's U.S. fleet begins to see increasing utilization. We also expect higher free cash flow in H2/26 as capital spending normalizes, which should support increased share buybacks. We have raised our activity level and field expectations for both the U.S. and Canada, which increases our 2026 EBITDA estimate to $569MM from $533MM previously. We therefore increase our price target to $160/sh ($150/sh prior) based on 2026E EV/EBITDA of 4.3x (4.2x prior)," analyst Jamie Kubik wrote.
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Price: $129.99, Change: $+3.29, Percent Change: +2.60%