Oil driller Nabors Industries is up 140% in a year, benefiting from Middle East tensions and a Barclays upgrade. The stock is a top pick for Bill Miller's portfolio.
Nabors Industries Ltd. (NYSE:NBR) is a top stock pick in Bill Miller's portfolio, according to Insider Monkey. The oil and gas driller has surged 140% over the past year. Shares are up 48% year-to-date.
RBC Capital kept a Hold rating on the stock in July, with a $200 price target. Media reports attribute the rally to Middle East hostilities that disrupted oil supply, raising the profile of drilling companies. The effect showed in the share price: Nabors fell 13.9% between June 15 and June 24 after the U.S. and Iran de-escalated.
Earlier in May, Barclays raised its price target to $99 from $65 and upgraded the stock to Equalweight from Underweight. The bank said the energy services sector is in its best position in two decades. The upgrade came before the recent surge.
Nabors operates drilling rigs across the globe. The company's exposure to oil supply disruptions in the Middle East has been a key driver of the stock's run. The pullback after the de-escalation suggests the rally is tied to geopolitical risk premiums.
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