Precision Drilling (PD.TO) maintained its stock ratings and price targets at RBC Capital Markets and National Bank of Canada following the release of its fourth-quarter 2024 results.
RBC said overnight Wednesday that it was retaining Precision's Outperform rating and $121 price target on "neutral" sentiment and as PD reported an "in-line" quarter and increased its shareholder return mix in 2025.
RBC said overall Precision's daily margins were slightly below its expectations in the US and Canada, , which may have knock-on impacts into forward estimates. However it noted that 2025 looks to be "another strong year" of free cash flow generation, with an increasing allocation to shareholder returns.
National Bank on Thursday kept the company's Sector Perform rating and $135 price target. The bank said while the quarter saw "drag", the resilience of its earnings continue to be well-noted, the returns of which remain well-positioned to support accelerated shareholder returns and value.
Precision reported an adjusted EBITDAS of $136 million, compared to the Street projection of $136 million and the RBC estimate of $140 million.
Revenue of $468 million was below the consensus forecast of $482 million.
Precision's share price was down 1.5% at last look to $79.11 on the TSX.
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