TD Cowen analyst Marc Bianchi raised the firm's price target for Helmerich & Payne, Inc. (NYSE:HP) from $33 to $35 on January 7. The analyst maintained a 'Hold' rating on the shares. This adjustment was part of the firm's Q4 preview, suggesting an upside of more than 14% from current levels.
Bianchi observed that many oilfield stocks have risen following news of US actions in Venezuela. These actions could allow American oil companies access to the world's largest oil reserves. However, he noted that US firms would need considerable time and White House guarantees before investing billions to restore Venezuela's deteriorating oil infrastructure.
TD Cowen views the market's enthusiastic response as possibly excessive, but considers some oil stocks, including Helmerich & Payne, to still be 'cheap'. Helmerich & Payne provides drilling solutions and technologies for oil and gas exploration and production companies.
The company is attempting to collect $90 million in unpaid invoices and recover 11 drilling rigs that Venezuela seized in 2010. The recent US moves to oust President Maduro and take control of the country's oil reserves might aid these recovery efforts.
Helmerich & Payne was listed among 10 high-yield crude oil stocks to buy after Trump's actions in Venezuela.