In this part, we’ll look at Wall Street analysts’ forecasts for Patterson-UTI Energy (PTEN) shares following its 4Q16 earnings release.
Consensus rating for Patterson-UTI Energy
On February 9, following its 4Q16 earnings, ~50% of analysts tracking Patterson-UTI Energy rated it a “buy” or some equivalent. Approximately 44% rated the company a “hold,” while 6% of the analysts recommended a “sell” or some equivalent. Patterson-UTI Energy accounts for 0.04% of the iShares Russell 1000 Value ETF (IWD).
In comparison, ~18% of analysts tracking Helerich & Payne (HP) rated it a “buy” or some equivalent. Approximately 58% rated the company as a “hold,” while the rest rated it as a “sell” or some equivalent.
Analysts’ rating changes
From November 9, 2016, to February 9, 2017, the percentage of analysts recommending a “buy” or some equivalent for Patterson-UTI Energy fell from 55% to 50%. Analysts’ “hold” recommendations rose in the past four months. A year ago, ~61% of the sell-side analysts recommended a “buy” for Patterson-UTI Energy.
Analysts’ target prices
Wall Street analysts’ mean target price for Patterson-UTI Energy on February 9 was ~$28.7. Currently, Patterson-UTI Energy is trading at ~$27.8. It implies ~3% upside at its current consensus mean price. A month ago, analysts’ average target price for Patterson-UTI Energy was $27.3.
Target prices for Patterson-UTI Energy’s peers
The mean target price, surveyed among sell-side analysts, for Nabors Industries (NBR) was $19.5 on February 9. Currently, Nabors Industries is trading at ~$15.5. It implies 25% upside at its average target price. The mean target price, surveyed among sell-side analysts, for Weatherford International (WFT) is $7.5 on February 9. Currently, Weatherford International is trading at ~$5.9. It implies 26% upside at its average price.
Read The Oilfield Equipment and Services Industry: A Primer to learn more about the OFS industry.