Patterson-UTI downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Arun Jayaram downgraded Patterson-UTI (PTEN) to Underweight from Neutral with a price target of $6, down from $7. The firm adjusted ratings in the oilfield services and equipment outlook as part of its 2026 outlook. JPMorgan retains a cautious sector stance citing upstream spending headwinds, but sees some “idiosyncratic growth opportunities.” The analyst expects oilfield service stocks to play “second fiddle” to upstream companies and other energy sub-sectors due to a weakening spending picture. In a more challenging macro environment, companies that can demonstrate the most earnings resiliency and growth prospects are best positioned, the analyst tells investors in a research note.