UPDATE: Wunderlich Securities Initiates Patterson-UTI Energy at Buy on Margin Outlook, Valuation

Wunderlich Securities initiated its coverage on Patterson-UTI Energy PTEN with a Buy rating and a price target of $20. Wunderlich Securities commented, "The company is a North American-focused land drilling rig contractor that has rapidly expanded into the pressure pumping business to capture additional service work. We believe Patterson-UTI is a strong way to play both the land drilling and pressure pumping businesses given it continues to upgrade the rig fleet and is not competing on price on the completion side. We like the long-term focus of Patterson-UTI, and the current valuation, which we believe is overly macro-driven, looks compelling, in our view." Patterson-UTI Energy closed at $17.06 on Wednesday.