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Investing.com - Barclays downgraded Patterson-UTI Energy (NASDAQ:PTEN) from Overweight to Equalweight on Monday, while reducing its price target to $6.00 from $7.00. The stock, currently trading at $5.37, has declined 7.57% over the past week and is trading near its 52-week low of $5.10.
The downgrade comes as Barclays lowered its EBITDA forecasts for the oilfield services company to $868 million for 2025 and $779 million for 2026, down from previous estimates of $875 million and $816 million, respectively. For reference, the company’s current EBITDA stands at $1.01 billion. According to InvestingPro, which offers comprehensive analysis of 1,400+ stocks, the company maintains strong liquidity with a current ratio of 1.73.
Barclays’ new price target is based on a sum-of-the-parts valuation analysis applying different multiples to the company’s 2026 EBITDA across its business segments: Drilling Services (4.5x), Completion Services (4.0x), Drilling Products (4.25x), Other Operations (3.5x), and Corporate Expenses (4.25x).
The previous $7.00 target had been calculated using mid-cycle profitability metrics of $15,000 daily margins for land drilling rigs and $18.5 million EBITDA per fleet for fracturing operations, with a 3.5x EBITDA multiple.
Patterson-UTI Energy provides oilfield services including contract drilling, pressure pumping, and directional drilling to oil and natural gas companies primarily in the United States. The company has maintained dividend payments for 22 consecutive years and appears undervalued according to InvestingPro’s Fair Value analysis.
In other recent news, Patterson-UTI Energy reported an average of 93 drilling rigs operating in the United States during September 2025. The company maintained an average of 95 drilling rigs for the third quarter ending September 30, 2025. In August, the company reported 94 drilling rigs, while in July, the number was 98. These figures indicate a slight decrease in drilling activity over the past few months. Additionally, Patterson-UTI announced that Leslie Beyer, a board member since September 2023, has been confirmed by the U.S. Senate as Assistant Secretary for Land and Minerals Management at the U.S. Department of the Interior, leading to her resignation from the board. In analyst coverage, Stifel reiterated its Buy rating for Patterson-UTI Energy. The research firm noted improvements in customer satisfaction metrics, particularly highlighting NexTier’s significant rise in the Net Promoter Score following its merger with Patterson-UTI.
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