Canaccord Genuity Cuts Numbers on Patterson-UTI (PTEN); Some Headwinds, but Valuation Gap From Peers Too Great
PTEN Hot Sheet
Rating Summary:14 Buy, 7 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Canaccord Genuity reiterates a 'Buy' on Patterson-UTI Energy (NASDAQ: PTEN) price target lowered from $32 to $26.
Analyst, John Tasdemir, said, "We reiterate our rating as we continue to like PTEN’s ability to high-grade its rig fleet as the company retired 53 rigs in 2011, delivered 25 new Apex rigs, and will deliver an additional 30 rigs in 2012. The company also has more contract coverage than in previous cycles with 60% of rigs under term contracts and only 30 rigs on spot contracts targeting dry gas. With our view of a flattening North American drilling rig count in 2012, we have modeled PTEN’s rig activity to stay flat as new build rigs offset conventional rigs that may get laid down."
"We are lowering our 2012E EPS by 35c to $2.40 and our 2013 estimate by 30c to $2.75."
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 $18.68 yesterday, with a 52 week range of $15.06-$34.09.
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Analyst, John Tasdemir, said, "We reiterate our rating as we continue to like PTEN’s ability to high-grade its rig fleet as the company retired 53 rigs in 2011, delivered 25 new Apex rigs, and will deliver an additional 30 rigs in 2012. The company also has more contract coverage than in previous cycles with 60% of rigs under term contracts and only 30 rigs on spot contracts targeting dry gas. With our view of a flattening North American drilling rig count in 2012, we have modeled PTEN’s rig activity to stay flat as new build rigs offset conventional rigs that may get laid down."
"We are lowering our 2012E EPS by 35c to $2.40 and our 2013 estimate by 30c to $2.75."
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 $18.68 yesterday, with a 52 week range of $15.06-$34.09.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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