Patterson-UTI Lowered to Sell – Analyst Blog
Source: http://www.zacks.com/stock/news/16880/Patterson-UTI+Lowered+to+Sell+-+Analyst+BlogPosted on Tuesday, January 20th, 2009 | In Stocks to Watch
Our downgrade of Patterson-UTI (PTEN) shares reflects our bearish view of the North American land drilling scene. The expected drop off in drilling activities, in response to a combination of commodity-price weakness and credit market tightness, will weigh on the fortunes of all oilfield service players in general and land drillers (such as Patterson-UTI) in particular.
Patterson-UTI remains particularly vulnerable to this negative outlook given its lack of contract coverage and heavy spot market exposure. We expect dayrate and margin pressures to continue into 2010 even as normal drilling demand resumes later this year due to the heavy capacity overhang.
Our new $8 price objective reflects 2009 P/E and EV/EBITDA multiples of 10.8x and 4.5x, respectively, both well within historical trading ranges.
Read the full analyst report on PTEN
“PTEN” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- CNP & FPL Ink Pipeline Deal - Analyst Blog - November 20th, 2009
- Buffett Borrows for Rail Acquisition - Analyst Blog - November 20th, 2009
- Stone Energy Outdoes Estimates - Analyst Blog - November 20th, 2009
- Smucker's Beats, Raises Guidance - Analyst Blog - November 20th, 2009
- GameStop Meets Expectations - Analyst Blog - November 20th, 2009
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.