Deutsche Bank Upgrades Patterson-UTI Energy (PTEN) to Buy, More Constructive on Natural Gas

Deutsche Bank upgraded Patterson-UTI Energy (NASDAQ: PTEN) from Hold to Buy with a price target of $28.00 (from $17.00).

The firm comments, "We are upgrading PTEN to a BUY from a HOLD given our new framework which outlined our more constructive view on natural gas both in the near and longer term. While not generally considered to be natural gas weighted, given its strong position in the Permian, PTEN would stand to benefit from a pickup in gas directed activity through its legacy position both in drilling and pumping in Appalachia. We already have seen some evidence of this while PTEN’s North America land businesses remain under downward pressure, their dayrates have held up better than expected while also seeing some small activity improvement in pumping in Appalachia. Strong cash flow generation and continued share repurchases should help while we wait for budgets to get reset in 2013 and for activity levels to pickup.

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 $17.00 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Indigo Paints (INDIGOPN:IN) PT Raised to INR1,300 at ICICI Securities
• Travel Food Services (TRAVELFO:IN) PT Raised to INR1,600 at ICICI Securities