
Cactus (WHD) Stock Forecast & Price Target
Cactus (WHD) Analyst Ratings
Bulls say
Cactus Inc. is positioned favorably with a high market share in the Pressure Control segment, expected to enhance further over the next year due to continued market share gains and innovative product introductions. The company is anticipating a modest revenue growth for its Spoolable Technologies segment driven by increased customer demand, with adjusted EBITDA reflecting strong performance, beating forecasts significantly with a sequential increase and healthy margins. Furthermore, Cactus has demonstrated robust free cash flow generation, indicating a solid financial foundation to support ongoing growth and operational enhancements.
Bears say
The financial analysis reveals that Cactus Inc. experienced a significant decline in operating income, which decreased 29.2% sequentially and is a concern given the sequential drop in the remeasurement of earn-out liabilities associated with the FlexSteel acquisition. Despite a slight revenue beat and positive adjusted EBITDA, the segment revenue showed a year-over-year decline of 3.9% and a sequential slip of 1.1%, indicating a diminishing performance amidst a challenging market landscape characterized by falling rig counts. Furthermore, the cautious outlook for 2024, influenced by constraints on Spoolable margins and a stagnant U.S. land activity environment, adds to the negative sentiment surrounding the company's future financial prospects.
This aggregate rating is based on analysts' research of Cactus and is not a guaranteed prediction by Public.com or investment advice.
Cactus (WHD) Analyst Forecast & Price Prediction
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