LONDON (ShareCast) - (Sharecast News) - Berenberg downgraded Hunting on Friday to 'hold' from 'buy' as it said the risk/reward is less attractive after a strong share price performance.
The bank, which kept its price target at 325p, said Hunting's revenue has tracked the wider recovery that has occurred in the US rig count and its share price has had a strong run, up 63% since it upgraded the stock in July 2022.

"Moreover, the company posted strong FY22 results on 2 March; however, the US rig count has declined year-to-date and faces headwinds to further growth, including labour shortages, supply chain constraints, lower gas prices and continued capital discipline," Berenberg said.

"These factors have contributed to a reduction in our revenue estimates of 3% and 4% for 2023 and 2024 respectively."

It said that while the outlook remains strong, the risk/reward is now less attractive, with shares trading on FY23/FY24 EV/EBITDA of 7x/5.8x.

At 1230 GMT, the shares were down 4.4% at 292p.

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