
Precision Drilling (PDS) Stock Forecast & Price Target
Precision Drilling (PDS) Analyst Ratings
Bulls say
Precision Drilling Corp is experiencing a positive shift in its operational metrics, evidenced by an increase in the gross margin expectations for 2026 by 3% to $330 million, despite a slight year-over-year decline. The company anticipates a higher rig count, with 37 rigs operational in Q4, which stands in contrast to industry trends showing a decrease of 56 rigs, highlighting Precision's competitive position. Additionally, the improvement of the company's balance sheet, growing visibility in the U.S. market, and an internationally diversified business model are key drivers for potential multiple expansion, reinforcing a favorable outlook for the stock.
Bears say
Precision Drilling Corp faces considerable challenges impacting its financial outlook, primarily due to anticipated activity levels falling short of expectations and a decline in high-spec rig utilization in the U.S. The company is struggling to generate free cash flow (FCF), which hinders its ability to effectively reduce debt amid weakening oil prices that are further decreasing demand for oil-directed drilling services. Additionally, the projected average of 65 working rigs in Q3, representing a year-over-year decline, coupled with declining rig margins, underscores the company's difficulties in maintaining profitability and growth.
This aggregate rating is based on analysts' research of Precision Drilling and is not a guaranteed prediction by Public.com or investment advice.
Precision Drilling (PDS) Analyst Forecast & Price Prediction
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