Precision Drilling Corp T.PD

Eric Nutall - BNN - TOP PICK

[Possibleidiot01]

TOP PICK

Precision Drilling(PD-T)

10/07/2024

 

Modest multiple. Trades today at 22-23% free cashflow yield at modest activity levels; forward free cashflow yield of 26%. Offers strong optionality for better activity levels in 2025, predicated on higher nat gas price. No interest in services right now, so that's one of the best value propositions. No dividend.

(Analysts’ price target is $127.38)

oil / gas field services

 

N/A

Owned

[Possibleidiot01]

more. PRECISION DRILLING (PD TSX) Despite sluggish oilfield service activity levels currently Precision is rapidly harvesting free cash flow, paying down debt, and returning over 30 per cent of its free cash flow back to shareholders. We are bullish on an increase in natural gas and oil activity in 2025 and have the stock trading at a 23 per cent / 26 per cent 2024/2025 free cash flow yield

[auburn2]

Agree with him. Just think something like Akita is more compelling for a small investor. For his fund, he needs larger companies of course.

[itsalie]

Nuttal math.. If it were accurate all oil stocks would be double where they are now.. This one is made worse by the fact that it's controlled by institutional owners rather than market.. Nuttal owns 10%.. not sure if thats good or bad..  https://finance.yahoo.com/news/precision-drilling-corporation-tse-pd-134609369.html