Kepler Cheuvreux has adjusted its stance on Hunting Plc (HTG: LN) (OTC: HNTIF), shifting from a Buy to a Hold rating.
The firm also revised its price target for the company's shares, reducing it to GBP4.50, down from the previous GBP5.55.
The decision to downgrade was influenced by Kepler Cheuvreux's revised oil price assumptions, which are expected to impact Hunting's business operations.
The analyst anticipates that Hunting will experience a decrease in both volumes and pricing for its perforating systems and oil country tubular goods (OCTG) in North American markets.
Despite a backlog that is likely to bolster the international OCTG and Subsea divisions, the analyst projects that Hunting's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year 2025 will fall short of the company's own guidance.
In response to the anticipated challenges, Kepler Cheuvreux has updated its model for Hunting, leading to reduced forecasts for the years 2025 and 2026.
The reassessment of the company's financial outlook has prompted the firm to adjust its valuation and issue a new target price of 450 pence, down from the earlier target of 555 pence.
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