Inside the Analyst Forecasts for Patterson-UTI Energy after Its 2Q16 Earnings

Approximately 52% of anaApproximately 52% of analysts tracking Patterson-UTI Energy (PTEN) rated it a “buy” or some equivalent. Approximately 34% rated the company a “hold.”lysts tracking Patterson-UTI Energy (PTEN) rated it a “buy” or some equivalent. Approximately 34% rated the company a “hold” or some equivalent. Only 14% of the analysts recommended a “sell.” Notably, Patterson-UTI Energy makes up 0.5% of the WisdomTree SmallCap Dividend ETF (DES).

By comparison, approximately 42% of analysts tracking McDermott International (MDR) rated it a “buy” or some equivalent, and approximately 50% rated it as a “hold.” Only 8% rated MDR as a “sell.”

Specifically, RBC Capital Markets (part of the Royal Bank of Canada) gave Patterson-UTI Energy a target price of $25 after PTEN’s 2Q16 earnings release. Patterson-UTI Energy currently trades near $19.4, implying ~29% return for the next 12 months.

Capital One Securities gave PTEN a one-year target price of $18—one of its lowest target prices—which implies a -7% return over the next year.

Among the large investment banks, Morgan Stanley gave Patterson-UTI Energy a one-year target price of $34—one of its highest target prices—which implies ~75% return at its current price during the next 12 months.

Following PTEN’s 2Q16 financial results, the highest target price for PTEN was $34, and the lowest was $14. The median target price as surveyed among the sell-side analysts for PTEN was $21.6. PTEN is currently trading near ~$19.4, which implies a ~12% upside at its median price.

For more on the oil and gas industry, check out Market Realist’s Energy and Power page.