RBC Capital has revised its price target for Patterson-UTI Energy (PTEN, Financial), reducing it from $11 to $9.50. Despite this adjustment, the firm maintains an Outperform rating on the shares, suggesting continued confidence in the company's potential.
The reduction in the price target is part of a broader analysis of the Oil & Gas Equipment & Services sector, which has faced significant pressure recently. Contributing factors include concerns over tariffs and broader macroeconomic challenges that have led to stock sell-offs within this group.
Initially, RBC Capital had forecasted a modest recovery for the sector by 2026. However, the firm has revised its outlook, deeming that scenario less likely under current conditions. In response, RBC Capital now adopts a more defensive stance, favoring stocks that boast backlog coverage, involvement in natural gas-directed activities, strong free cash flow, and minimal balance sheet leverage.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Patterson-UTI Energy Inc (PTEN, Financial) is $9.89 with a high estimate of $12.00 and a low estimate of $8.00. The average target implies an upside of 69.69% from the current price of $5.83. More detailed estimate data can be found on the Patterson-UTI Energy Inc (PTEN) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Patterson-UTI Energy Inc's (PTEN, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Patterson-UTI Energy Inc (PTEN, Financial) in one year is $11.45, suggesting a upside of 96.4% from the current price of $5.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Patterson-UTI Energy Inc (PTEN) Summary page.
