Helmerich & Payne (HP) Stock: Why It Increased Over 4.5% Today

By Amit Chowdhry ● Sep 26, 2022
  • The stock price of Helmerich & Payne (HP) increased by over 4.5% pre-market today. This is why.

The stock price of Helmerich & Payne (HP) increased by over 4.5% pre-market today. 

Why: Bullish research report

Price target: Increased from $48 to $55

Rating: Upgraded from Underweight to Equal-weight

Analyst: Morgan Stanley analyst Connor Lynagh

Lynagh adjusted the rating while noting that the key drivers of the HP upgrade is that they see peer leading free cash flow revisions potential despite modeling below average and above average capex.

“Additionally, we see strong downside protection for HP shares, supported by the net cash position we forecast for the company by calendar year-end 2022. Meanwhile, our EW rating is supported by the roughly in line EV/EBITDA valuation vs. the peer group and vs. its historical trading range that we see for HP, though we do see slightly higher FCF yields, on average, for the peer group,” wrote Lynagh in a research note.