Cactus rises after Barclays upgrades on Middle-East growth prospects

Cactus

04/06/2025 11:53

** Shares of oilfield equipment maker Cactus WHD.N rise 2.6% to $45.25 premarket

** Barclays upgrades rating on WHD to "overweight" from "equal weight", raises PT to $54 from $51

** New PT implies a 23.2% upside to stock's last close

** Cactus' purchase of 65% interest in Baker Hughes' BKR.O unit for $345 million will help the company expand its Middle-East footprint, which is expected to be a growing market - brokerage

** The acquired business will contribute significantly to Cactus' revenue, with 85% of its revenue coming from the Middle East, Barclays says

** The deal is expected to help Cactus balance its portfolio and reduce its dependence on the North American market - brokerage

** Says the acquisition is expected to add value to WHD in the long term, with potential for increased market share and improved margins

** As of last close, WHD shares down 24.4% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))