Barclays downgraded Expro Group (NYSE: XPRO) to Equalweight from Overweight and reduced its price target to $14 from $19 after a series of guidance cuts. The shares were trading at $13.86, down 20% over the previous week, according to Investing.com.
Expro lowered its guidance by 7% during its second-quarter earnings announcement and made another 7% reduction earlier this week. Barclays noted that the company has issued guidance cuts over the past three years, dating back to October 2023.
The bank said Expro’s management had either not built enough conservatism into its forecasts or lacked the visibility to anticipate changes in customer schedules. It concluded that the company’s inconsistent execution supported a lower valuation multiple.
After Expro’s third-quarter results and softer guidance for 2027, Barclays reduced its estimates for 2026 and 2027. Its new $14 price target is based on 4.5 times projected 2027 EBITDA, compared with a previous multiple of 5.5 times.
Expro reported third-quarter 2026 revenue of $440 million, above Wall Street expectations and 12% higher sequentially. Earnings per share came in at $0.19, below the expected $0.28. The company also raised its full-year free cash flow guidance and said it expected a record fourth quarter.
The company generates 70% of its revenue from offshore operations and 80% from international markets. Its businesses include tubular running services and well testing. Leioa
Sources: Investing.com News.