Cactus Inc. Faces Lower Price Target Amid Tariff Challenges and Revenue Decline

Cactus Inc's (WHD) price target has been adjusted to $52 by Barclays analyst J. David Anderson, down from $53, due to the company's failure to meet consensus EBITDA expectations. Anderson maintains an Overweight rating on the stock. Cactus specializes in wellheads and pressure control equipment for the energy sector, with a market capitalization of approximately $2.72 billion. The company's financial health reveals a mixed picture, with strong historical revenue growth but recent setbacks. The operating margin is expanding, and the balance sheet is robust, but insider activity shows significant insider selling.

Cactus Inc. (NYSE: WHD) has seen its price target adjusted by Barclays analyst J. David Anderson. The new target of $52 is a decrease from the previous $53, according to a report issued on Monday, August 4, 2025 [1]. The analyst maintains an "overweight" rating on the stock, indicating a potential upside of 30.54% from the company's previous close.

The adjustment comes after Cactus Inc. missed consensus EBITDA expectations in its second-quarter earnings report. The company reported revenue of $273.6 million and adjusted EBITDA of $86.7 million, both short of analyst forecasts [2]. The Pressure Control segment faced challenges from tariffs and higher litigation costs, leading to a 22.1% drop in operating income [3].

Despite the setbacks, Cactus Inc. is pursuing strategic acquisitions to diversify its business. The company is acquiring a 65% stake in Baker Hughes' Surface Pressure Control business, aiming to broaden its reach and buffer against swings in the North American oil market [3].

Cactus Inc. has a market capitalization of approximately $2.72 billion, with a PE ratio of 15.05 and a PEG ratio of 3.62. The company's balance sheet is robust, with a current ratio of 4.85 and a debt-to-equity ratio of 0.01 [1]. However, insider activity shows significant insider selling, which could indicate concern among top executives.

The company's financial health reveals a mixed picture. While historical revenue growth has been strong, recent setbacks in the Pressure Control segment have led to margin pressures. The operating margin is expanding, but the market's skepticism about Cactus's ability to sustain profitability amid declining U.S. land activity and geopolitical headwinds is evident in the stock's after-hours trading drop of 10.73% following the earnings report [3].

References:
[1] https://www.marketbeat.com/instant-alerts/cactus-nysewhd-price-target-lowered-to-5200-at-barclays-2025-08-04/
[2] https://finimize.com/content/cactus-inc-misses-estimates-but-bets-on-expansion
[3] https://www.ainvest.com/news/cactus-whd-navigating-margin-pressures-strategic-acquisitions-long-term-resilience-2508/