TD Cowen lifts Precision Drilling to Buy and raises target to C$150
TD Cowen upgraded Precision Drilling to Buy from Hold, raising its target to C$150 and expecting US margins to recover in Q4, per Seeking Alpha.
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what happened
Shares of Precision Drilling rose 4.5% on Tuesday after TD Cowen upgraded the onshore driller to Buy from Hold, according to Seeking Alpha. The brokerage raised its price target to C$150 from C$111.
Analyst Aaron MacNeil expects a soft third quarter, yet notes that the company's leadership is publicly pledging to reach US margins of $10,000 per day in Q4, with room for further gains in 2027. He argues that the company has tied its credibility to delivering on that margin goal, so confirming it with the quarterly report would be a positive catalyst.
why it matters
For the sector this points to valuation. MacNeil says cyclical drillers trade at their widest discount to premium names in over 15 years, and cites 3.3x estimated 2027 EBITDA and a 16% free cash flow yield as an attractive setup. Its Super Single rigs suit the Clearwater play, while condensate demand tied to expanding Canadian egress supports the Montney and Duvernay activity.
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sources
- Precision Drilling raised at TD Cowen on Q4 margin recovery outlook — Seeking Alpha, 20 October 2026 at 19:53 UTC
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