With the industry requiring increasingly complex well designs, there is high demand for modern, technologically sophisticated rigs. Given its newest and most technologically-advanced land rig fleet, Helmerich & Payne (HP) is well positioned to take advantage of this scenario, while continuing to gain market share and adding value for its shareholders and customers.
A relatively conservative financial policy and a high quality client base are other positives in the Helmerich & Payne story. Buoyed by these factors, we are upgrading the company’s shares to Outperform from Neutral.
We believe Helmerich & Payne is well positioned going forward and consider it an attractive investment. This is reflected in our Outperform recommendation and the $76 price objective, which is based on a 2010 P/E multiple of 19.2X.
HELMERICH&PAYNE (HP): Free Stock Analysis Report
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