Nabors Industries (NBR) Stock Forecast & Price Target

Nabors Industries is well-positioned to exceed full year guidance of a $25 million FCF loss with its 2Q26 FCF expected to flip positive, driven by solid 1Q26 results, a growing US Land rig count, expanding US Land daily margins, continued international growth, and higher leading-edge day rates. Despite potential impacts from the current Middle East conflict, Nabors remains relatively unimpacted with its Strong performance in 1Q26, and EBITDA only expected to be negatively affected by $3.5 million in 2Q26. In addition, the company's strong financial performance and resilient EBITDA generation in the face of Middle East disruptions give a positive outlook for the remainder of the year. With a strong focus on maintaining capital spending and optimizing working capital, Nabors is expected to exceed its full year FCF guidance range. The company's expected increase in rig count, stable daily margins, and potential upside from Private E&Ps adding activity under the current commodity price environment also present potential for further growth. Along with a solid balance sheet and a strategic joint venture in the international market, Nabors is well-positioned for sustainable growth in the future.

Nabors Industries is facing challenges in both its U.S. and international operations, with a decrease in estimated EBITDA for 2Q26 and lingering logistical disruptions in the Middle East. The company's limited rig count additions and inability to reduce leverage raise concerns about its ability to generate free cash flow and potential volatility in the oil and gas market. These factors contribute to a negative outlook on the stock and a downside scenario of $71.00.