UPDATE: Deutsche Bank Reiterates, Raises PT on Patterson-UTI Energy on Good Position for Expected Increased Activity
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Patterson-UTI Energy (NASDAQ: PTEN), and raised the price target from $28.00 to $30.00.
In the report, Deutsche Bank noted, “Well positioned for increase in activity levels for 2014. After pushing through some near-term headwinds (pressure pumping inefficiencies and contract rollovers), PTEN remains well positioned for the expected pickup in activity levels in 2014. Costs have started to normalize earlier than expected in drilling and the company continues to see demand for its Apex rigs so they plan on building 20 next year. This should also have a positive impact on margins due to the improving mix. While pumping will start 2014 from a lower 2013 exit point, increasing 24 hour operations/ utilization should improve margins as the year progresses. PTEN is also looking at international expansion for the first time. We reiterate our BUY rating.”
Patterson-UTI Energy closed on Friday at $22.28.
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