Global Hunter Securities Downgrades Patterson-UTI Energy (PTEN) to Neutral; Closing In On 30,000 Feet

Global Hunter Securities downgraded Patterson-UTI Energy (NASDAQ: PTEN) from Accumulate to Neutral, price target lowered from $28 to $24.

Global analyst says, "PTEN's margin outlook was weaker than we anticipated for both segments. As such, we are reducing our 2012 EPS estimate 11% to $2.65. We are introducing our 2013 EPS estimate of $2.55, which assumes pressure pumping margins gradually decline from 2012 levels, as the market is adequately supplied and increases in rig dayrates cover only cost inflation. As was the basis for our September downgrade, we believe 2012 will represent peak earnings for several OFS companies unless they grow through capacity additions, which ultimately should come with a payback below current levels."

For more ratings news on Patterson-UTI Energy click here and for the rating history of Patterson-UTI Energy click here.

Shares of Patterson-UTI Energy closed at $22.19 yesterday.

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