UPDATE: Jefferies Upgrades Precision Drilling on Share Weakness with Steady Fundamentals

In a report published Friday, Jefferies analyst Brad Handler upgraded the rating on Precision Drilling (NYSE: PDS) from Hold to Buy, and reiterated the $11.00 price target.

In the report, Jefferies noted, “We believe recent pullback in PDS shares presents an attractive buying opportunity. The decline (before yesterday) likely reflects deflating Canadian LNG-driven expectations (amount and timing) to more realistic levels. Meanwhile, U.S. drilling share gains impress and we have confidence in International drilling and U.S. C&P traction. We expect next week's '14 capex announcement includes additional newbuild awards. Maintain $11 PT; upgrade to BUY rating.”

Precision Drilling closed on Thursday at $8.75.