Barclays cuts Expro Group stock rating on guidance misses

Barclays has downgraded Expro Group's stock rating to Equalweight from Overweight, reducing its price target to $14.00 from $19.00. This adjustment comes after the oilfield services company issued multiple guidance reductions, including 7% decreases during second-quarter earnings and an additional 7% earlier this week. The downgrade is based on Barclays' assessment that Expro has not incorporated enough conservatism into its guidance or lacks sufficient visibility to predict changes in customer schedules.

The bank also noted that a lower valuation multiple is now justified given the lack of steady execution. Expro's 2026 and 2027 estimates were lowered following disappointing third-quarter results and soft guidance for 2027. The research firm's new $14 price target is based on 4.5 times 2027 EBITDA, a decrease from the previous 5.5 times valuation multiple.

Despite the downgrade, Barclays analysis suggests the stock remains undervalued and is included in the platform's Most Undervalued list. Expro derives 70% of its revenue from offshore operations and 80% from international markets, with its business operations focused on tubular running services and well testing. In related news, Expro Group Holdings plc reported its third-quarter 2026 financial results, showcasing a revenue of $440 million, exceeding Wall Street's expectations with a 12% sequential increase.

However, the earnings per share (EPS) of $0.19 fell short of the anticipated $0.28, drawing attention from investors. The company also raised its full-year free cash flow guidance and expressed optimism for a record fourth quarter, indicating potential growth prospects.