Helmerich & Payne downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Keith Mackey downgraded Helmerich & Payne to Sector Perform from Outperform with a price target of $45, down from $53. believe Helmerich is a high-quality land driller with a solid balance sheet and high proportion of super spec rigs in its fleet, the analyst tells investors in a research note. However, the firm sees fewer growth and margin expansion catalysts for the stock given its revised outlook for a flatter U.S. rig count trajectory. RBC lowered its U.S. land rig count forecast for 2023 and 2024 to 674 and 674 from 741 and 793, respectively.