Precision Drilling: Piper Sandler Raises PT to $74, Maintains Overweight Rating

Precision Drilling: Piper Sandler Raises PT to $74, Maintains Overweight Rating

Precision Drilling Corp (PDS) has received a significant boost from Piper Sandler, which raised its price target to $74 per share while maintaining an "overweight" rating. This move comes amidst a series of positive developments for the drilling company, including a strong earnings report and increased institutional investment.

Piper Sandler's upgrade reflects the company's robust performance in the second quarter of 2025, where it reported earnings per share (EPS) of $0.77, significantly exceeding analysts' expectations of a loss. Revenue for the quarter reached $299.14 million, although it fell short of analyst estimates of $435.47 million. Despite this, the company's return on equity (ROE) of 6.21% and net margin of 5.67% indicate a healthy financial position [1].

The latest upgrade follows a trend of positive analyst sentiment towards Precision Drilling. Royal Bank of Canada (RBC) has also raised its price target to $100, and other analysts have shown a "Moderate Buy" consensus rating with a target price of $86.00 [2]. Additionally, National Bank of Canada FI increased its stock position in Precision Drilling by 1.4% during the first quarter, reflecting confidence in the company's prospects [3].

Precision Drilling's stock has shown resilience despite the challenging market conditions, with a 1-year low of $36.20 and a 1-year high of $75.19. The company's debt-to-equity ratio of 0.33 and quick ratio of 0.90 indicate a strong balance sheet and liquidity position. The firm's market cap stands at $725.35 million, with a P/E ratio of 11.55 and a beta of 1.15 [2].

Investors should monitor Precision Drilling's upcoming earnings releases, particularly the Q3 2025 results, which are expected to be positively influenced by the company's increased capital spending and improving outlook. Analysts at Atb Cap Markets have raised their Q3 2025 EPS estimate to $0.94 per share, reflecting a bullish outlook for the company [3].

References:
[1] https://ca.finance.yahoo.com/quote/PDS/news/
[2] https://www.marketbeat.com/instant-alerts/filing-national-bank-of-canada-fi-increases-stock-position-in-precision-drilling-corporation-nysepds-2025-08-10/
[3] https://www.marketbeat.com/instant-alerts/atb-cap-markets-has-bullish-outlook-for-pds-q3-earnings-2025-08-04/