Nabors Industries Ltd. (NYSE:NBR) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler initiated coverage of the company’s stock with an “Underweight” rating and a price objective of $30, as reported by The Fly. Notably, the firm expects a challenging backdrop for US land, expecting the influence on oil prices because of tariffs and production hikes. Furthermore, the analyst is expecting a persistent negative rate-of-change environment for the balance of 2025.
A drilling rig on a large oil field, capturing a crucial moment of the extraction process.
However, Nabors Industries Ltd. (NYSE:NBR) completed the acquisition of Parker Wellbore, which has strengthened its portfolio with the complementary businesses. The acquisition is expected to be immediately accretive to Nabors Industries Ltd. (NYSE:NBR)’s 2025 FCF and to improve leverage metrics. Overall, the addition of Parker is a huge milestone for the company, significantly expanding Nabors Industries Ltd. (NYSE:NBR)’s Drilling Solutions business and adding strong cash generation to the combined company.
Apart from $130 million in incremental adjusted EBITDA for 2025 post-closing, Nabors Industries Ltd. (NYSE:NBR) remains on track to realize $40 million of cost synergies. Notably, Parker capital expenditures post-closing are aimed at $60 million for 2025. Miller Value Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Our two largest detractors during the quarter were Gannett (GCI) and Nabors Industries Ltd. (NYSE:NBR), with shares down 43% and 26%, respectively, during the quarter. Both companies’ share prices are at deep discounts to our view of their long-term fundamental value, and we have recently increased position sizes in both holdings.
