Cactus shares fall 5.5% after Citi cites stretched valuation at over 12x FY 2027 adjusted EBITDA.
Cactus (WHD) dropped 5.5% in Thursday trading after Citi downgraded the oilfield services company to Neutral from Buy. The firm set a $75 price target, noting the stock’s valuation exceeded 12x FY 2027 adjusted EBITDA following recent gains.
The downgrade follows a strong year-to-date performance for Cactus, which had previously benefited from rising oil prices and sector momentum. Analysts had anticipated further upside, but Citi’s reassessment reflects concerns over valuation metrics relative to peers.
Shares retreated sharply in response to the note, underperforming broader energy sector indices.