UPDATE: Wunderlich Securities Downgrades Patterson-UTI Energy Following Decent 3Q13 EPS Report

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on Patterson-UTI Energy PTEN from Buy to Hold, and lowered the price target from $25.00 to $23.00. In the report, Wunderlich Securities noted, “Patterson-UTI Energy (PTEN) reported a decent 3Q13 as EPS of $0.25 was above our $0.23 estimate but below the Street's $0.27 forecast. Revenues and EBITDA were near our and the Street's estimates for the quarter as well but 4Q13 guidance causes us to lower our estimates dramatically heading into the end of the year, which also causes us to reduce our 2014 estimates. While we still believe PTEN continues to have a premier rig fleet headlined by its APEX rigs and remains a player in the pressure pumping game, the continued efficiency gains in the OFS space coupled with E&Ps remaining content in growth of activity through said gains causes us to be more cautious on PTEN. The stock has had a nice run and using our updated figures we believe the stock is relatively fairly valued.” Patterson-UTI Energy closed on Thursday at $22.02.