Citi analyst Scott Gruber downgraded Patterson-UTI to Neutral from Buy. Given the risk of negative revisions, compressed multiples appear appropriate for U.S. oil & gas equipment and services stocks, Gruber argues. While contracts rolling presents a near-term positive catalyst, the decline in gas drilling will limit domestic fleet growth while pricing "appears near peak," the analyst added.
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Published first on TheFly
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Read More on PTEN:
- Patterson-UTI sees Q4 net income exceeding $100M, adjusted EBITDA over $230M
- Patterson-UTI initiated with a Strong Buy at Raymond James
- Patterson-UTI reports an average of 131 drilling rigs operating in November
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