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UBS Maintains a 'Neutral' on Patterson-UTI Energy (PTEN); Rig Market Solid, Frac A Growing Issue

February 3, 2012 1:34 PM EST
PTEN Hot Sheet
Rating Summary:
    14 Buy, 7 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Patterson-UTI Energy (NASDAQ: PTEN) price target cut from $22 to $20.

UBS analyst says, "Despite our assumption of a flat rig count in 2012, we believe PTEN should see modest improvements in rig margins next year driven by higher dayrate newbuild rigs. PTEN’s pressure pumping segment should also experience modestly higher overall margins early in the year (following the slight seasonal down-tick in Q1) given improved utilization and incremental capacity. PTEN is adding 30 incremental newbuild land rigs (13 contracted) and 140k hp (+22%) in frac hp during 2012."

UBS cuts FY12 EPS estimate from $2.76 to $2.60 and FY13 from $2.85 to $2.67.

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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