Zacks Investment Research upgraded shares of Patterson-UTI Energy, Inc. (PTEN) from UNDERPERFORM to NEUTRAL on January 16, 2013, with a target price of $20.00.
We are upgrading Patterson-UTI Energy shares to Neutral from Underperform, reflecting the onshore contract dealer's improved outlook. Buoyed by Patterson-UTI's growing premium land rig fleet and the expected demand uptick for such services we think that the current valuation is fair and adequately reflects the company's future growth prospects. However, we remain wary of increased labor costs for contract drilling that may lead to slower margin growth going forward. Lastly, Patterson-UTI is faced with weak natural gas fundamentals, which are expected to further limit its ability to generate positive earnings surprises.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Patterson-UTI Energy, Inc. (PTEN),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment