NEW YORK (TheStreet) -- Shares of Nabors Industries (NBR) were climbing on heavy trading volume late Thursday afternoon as DA Davidson began coverage of the stock with a "buy" rating and $16 price target.
"Nabors has the largest global land drilling fleet with nearly half of its revenues coming from international markets. International activity tends to be more stable than North American markets as customers and drilling programs are significantly larger," the firm wrote in an analyst note earlier today.
The Hamilton, Bermuda-based company owns and operates a land-based drilling rig fleet and provides an offshore platform workover and drilling rigs.
"While an international recovery typically lags North America, we believe the pace of production declines will require a quicker and more coordinated response from international land markets as well," DA Davidson noted.
The firm also believes Nabors has sufficient liquidity to maintain its dividend and that any concerns over debt are "overdone."
Additionally, oil prices were up this afternoon. Crude oil (WTI) was recently higher by 0.5% to $43.80 per barrel and Brent crude was gaining 1.42% to $46.50 per barrel.
More than 8.1 million of the company's shares traded so far today vs. its average volume of 6.96 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NBR