Global Hunter Securities Downgrades Patterson-UTI Energy (PTEN) to Accumulate
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Rating Summary:
21 Buy, 16 Hold, 6 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Global Hunter Securities downgraded Patterson-UTI Energy (NASDAQ: PTEN) from Buy to Accumulate with a price target of $18.00 (from $27.00).
Analyst Mark Brown commented, "We are lowering our rating to Accumulate from Buy due to the more uncertain E&P spending outlook that calls into question the timing and trajectory of a NAM onshore recovery. We still believe onshore service activity is bottoming, and favor PTEN's positioning relative to peers. However, we expect investors will focus on 2016, and our EPS estimate for that year is 18% below consensus. While we believe activity levels have likely stabilized, we are assuming a more moderate slope to the recovery in both contract drilling and pressure pumping. We have reduced our EPS estimates from ($0.80) to ($0.84) in 2015 and from ($0.75) to ($1.20) in 2016, and we have introduced an EPS estimate of ($0.34) in 2017. The changes push our price target from $27 to $18, based on a 9.0x multiple on our 2016 EBITDA estimate."
For an analyst ratings summary and ratings history on Patterson-UTI Energy click here. For more ratings news on Patterson-UTI Energy click here.
Shares of Patterson-UTI Energy closed at $16.11 yesterday.
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