Did Analysts Change Their Recommendations on PTEN?



Wall Street analysts’ recommendations

In this part, we’ll look at changes in Wall Street analysts’ recommendations for Patterson-UTI Energy (PTEN) in 2016. On December 12, Patterson-UTI Energy disclosed that it signed an agreement to acquire Seventy Seven Energy (SVNT).

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Different recommendations?

There are at least nine broker rating changes for Patterson-UTI Energy in 2016. JPMorgan Chase (JPM), a US-based investment bank, upgraded its rating to “neutral” on December 7. Piper Jaffray (PJC), an investment bank and asset management firm, upgraded Patterson-UTI Energy’s rating to “overweight” in June 2016. Patterson-UTI Energy accounts for 0.29% of the Vanguard Energy ETF (VDE).

Macquarie, a global investment banking and diversified financial services group, downgraded Patterson-UTI Energy’s rating to “underperform” in August 2016. Compared to Patterson-UTI Energy, there were at least six broker rating changes for Baker Hughes (BHI) in 2016. There were at least five broker rating changes for Schlumberger (SLB) in 2016.

Analysts’ target prices 

The highest target price for Patterson-UTI Energy is $35, while the lowest is $13.5. The median target price, surveyed among sell-side analysts, for Patterson-UTI Energy is ~$25. Currently, Patterson-UTI Energy is trading at ~$28.7. It implies ~13% downside at its median price.

For more on the oilfield services industry, read The Oilfield Equipment and Services Industry: A Primer.


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