JPMorgan initiated coverage of HMH Holding with an Overweight rating and $26 price target, representing 29% upside from current levels. HMH is a capital equipment provider of highly engineered, mission-critical drilling equipment and aftermarket services primarily for the offshore drilling industry, the analyst tells investors in a research note. The firm says the company offers growing exposure to the land drilling and mining markets. JPMorgan says HMH offers a high-margin, recurring aftermarket revenue mix and asset-light operating structure.
