Nabors Industries (NBR) Downgraded at Barclays

The stock of Nabors Industries Ltd. (NYSE:NBR) was recently downgraded by analysts at Barclays. Let's shed some light on the development.

With operations in approximately 20 countries, Nabors Industries Ltd. (NYSE:NBR) is a leading provider of advanced technology for the energy industry.

On May 19, 2025, Barclays analyst Eddie Kim downgraded Nabors Industries Ltd. (NYSE:NBR) to Underweight from Equal Weight, reducing its price target significantly from $53 to $28. According to the analyst, Nabors will see outsized activity and pricing declines in the lower 48 states and select international markets over the next year, as a result of the tough macroenvironment amid plunging crude oil prices and a bleak demand outlook. While the SANAD joint venture with Saudi Aramco is viewed as a potential growth area for Nabors, there are concerns about the venture’s financial sustainability.

That said, Nabors Industries Ltd. (NYSE:NBR) reported better-than-expected results for its Q1 2025 last month, posting a net income of $33 million, a significant turnaround from the previous quarter's net loss. The company's revenue of $736 million was also slightly up from the previous quarter. Nabors also completed the acquisition of Parker Wellbore in March, bolstering its portfolio with complementary businesses.

While we acknowledge the potential of NBR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NBR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.