The firm has a $72 price target on shares of the Tulsa, OK-based contract drilling company.
"H&P has the largest and also one of the most capable land drilling fleets in the markets. H&P's FlexRigs have transformed the land drilling market and are still the barometer that every other rig is measured against," DA Davidson wrote in a note earlier today.
While its peers have closed the performance gap over the past few years, the size of Helmerich & Payne's high-spec fleet, history of superior execution and strong customer relationships continue to stand out as an example to other companies, according to the firm.
Separately, Argus downgraded the stock to "hold" from "buy" today.
The firm expects rig utilization to decline for the rest of the year. Argus also said the company is increasingly relying on lower-priced spot contracts instead of higher-priced term contracts, the Fly reports.
Shares of Helmerich & Payne closed higher on Thursday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance.
But the team also finds weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and disappointing return on equity.
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: HP