Cactus rises after Barclays upgrades on Middle-East growth prospects

Shares of oilfield equipment maker Cactus WHD.N rise 2.6% to $45.25 premarket

Barclays upgrades rating on WHD to "overweight" from "equal weight", raises PT to $54 from $51

New PT implies a 23.2% upside to stock's last close

Cactus' purchase of 65% interest in Baker Hughes' BKR.O unit for $345 million will help the company expand its Middle-East footprint, which is expected to be a growing market - brokerage

The acquired business will contribute significantly to Cactus' revenue, with 85% of its revenue coming from the Middle East, Barclays says

The deal is expected to help Cactus balance its portfolio and reduce its dependence on the North American market - brokerage

Says the acquisition is expected to add value to WHD in the long term, with potential for increased market share and improved margins

As of last close, WHD shares down 24.4% YTD