Susquehanna has adjusted its price target for Helmerich & Payne (HP, Financial), bringing it down from $43 to $28 while still maintaining a Positive rating on the stock. This revision comes as the oilfield services sector enters the first quarter earnings season under a cloud of potential difficulties.
The firm highlights that dropping crude oil prices and economic uncertainties, driven by geopolitical tensions and shifting government policies, are creating a challenging environment. These factors could result in changes or delays in customer spending, which would impact the sector's performance negatively.
Currently, Susquehanna sees more downside risk than upside in the sector, given the present economic risks, lower crude prices, and limited improvements in activity. This translates to reduced optimism for U.S. and international spending projections for the full year.
