"Our downgrade reflects concern regarding utilization of portions of its U.S. land fleet in 2015 and risk to dayrates across its U.S. fleet," analysts said.
"We note the challenges NBR faced in utilization in 2012 (even within its AC rigs, albeit largely with the M-Series that is smaller than the more standard 1,500 hp/600+ kips hookload rigs that are being built in the current upcycle) and we reflect some of that relative softness for NBR in our expected rig count declines," analysts continued.
"We note an important risk to our more negative view is NBR's expected cost savings initiative, and we expect to learn more about this early in 2015, but we believe this initiative may be more narrow than we had thought previously-we think the focus is to be on lowering personnel turnover-and we are less optimistic about the potential impact on profitability," analysts added.
Shares of Nabor Industries are down 1.78% to $11.06 in pre-market trading.
Separately, TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: