PTEN Downgraded To Hold

Dahlman Rose has published a research report on Patterson-UTI Energy, Inc. PTEN and has downgraded the company to Hold after rethinking the risk/reward forecast on the company. In the report, Dahlman Rose writes "PTEN shares are up nearly 40%, nearing our original price target of $22. In line with our thesis, high utilization of premium land rigs in North America has seen incremental rig demand drive Patterson's rig utilization to 55% from 43%. Our outlook and estimates remain above consensus, but the shifting risk/reward leaves us to move to a Hold rating. Our more balanced view of the risk/reward in PTEN shares factors the growing risks of flattish North American natural gas rig counts, increasing competition from newbuilds on the company's legacy land rig fleet, and questions regarding the sustainability of extraordinary pressure pumping economics in relation to our earnings forecast." Dahlman Rose also maintains its $22 price target on Patterson-UTI Energy, which closed yesterday at $20.00.