04:05 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $44, reflecting a 6.4x multiple of projected FY23 (Sep.) operating cash flows, a discount to HP's historical average. We feel a discount is merited due to HP's significant North American exposure, as we think activity could drop further in '24-'25. We lift our FY24 EPS view by $0.30 to $3.62 and FY25's by $0.33 to $3.84. Mar-Q EPS of $0.84 vs. $1.26, missed consensus by $0.02. In Mar-Q, revenues ($688M) fell ~11% Y/Y, driven by weaker offshore revenues (-26%). HP's Lower 48 earned dayrates ($38K) grew 5% Y/Y, while its rig count (155 rigs) fell by 15%, and rig utilization (67%) declined by 12 percentage points. We note the insulation in earned dayrates on declining rigs is due to HP having 57% of its U.S. fleet on term contracts; however, we believe demand uncertainty could cause HP to see its rig utilization slip should customers not hold onto existing rigs once term contracts roll over to spot rates, which could cause dayrates to decline. Shares yield 3.9%.