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Helmerich & Payne (NYSE:HP) trades slightly lower Tuesday as Morgan Stanley downgraded the stock to Underweight from Equal Weight with a $45 price target, saying it expects below-consensus earnings coming in Q3 and FY 2023.
Morgan Stanley said it expects the focus around HP (HP) results will include U.S. macro data points and commentary, with oil vs. gas drilling expectations, operator activity trend expectations, and industry-level pricing and activity commentary.
The bank also cut Liberty Energy (NYSE:LBRT) to Equal Weight from Overweight with a $17 PT, anticipating below-consensus Q1 EBITDA results and Q2 and full-year guidance.
Among large caps heading into quarterly earnings, Morgan Stanley said it is “most constructive” on Halliburton (HAL) and Tenaris (TS), seeing slight earnings upside but a more meaningful free cash flow inflection.
The bank is “more tactically cautious” on NOV (NOV), expecting generally in-line earnings and consensus but believing H1 free cash flow estimates might be too optimistic.
NOV (NOV) is “well positioned to outlast another downturn given their low leverage and strong liquidity,” DT Analysis writes in a report published recently on Seeking Alpha.
Source: seekingalpha.com
