Drilling Tools International initiated with a Hold at Jefferies

Jefferies analyst Lloyd Byrne initiated coverage of Drilling Tools International with a Hold rating and $3 price target. The company’s focus on growing its high-margin premium tools business and deployment of RotoSteer tool makes sense and should support 2024 earnings, the analyst tells investors in a research note. However, the firm says that given the market’s view of energy equities, acquire and optimize strategies are being cautiously valued given “next step uncertainty.”