Susquehanna lowers Patterson-UTI Energy stock price target to $8

Published 04/06/2025, 13:00
Susquehanna lowers Patterson-UTI Energy stock price target to $8

On Wednesday, Susquehanna analysts lowered the price target for Patterson-UTI (NASDAQ:PTEN) Energy stock to $8 from $9 while maintaining a Positive rating, with the stock currently trading at $5.76. According to InvestingPro data, analyst targets range from $6.50 to $13.00, suggesting potential upside. The decision comes after adjustments to their model, reflecting updates from a recent investor presentation.

In the Drilling Services segment, the company reported a rig count of 100, with expectations for a slight decline by the end of the quarter. This led Susquehanna to adjust their rig count assumption to 103 for the quarter, down from the previous estimate of 106.

The Completion Services segment is experiencing increased white space due to delays in some expected jobs. Consequently, analysts lowered their gross margin assumption for this segment to $96 million, down from $103 million.

For the second quarter of 2025, Susquehanna now projects an EBITDA of $219 million, revised from a previous estimate of $228 million. The full-year EBITDA estimate has also been adjusted to $855 million, down from $867 million.

In other recent news, Patterson-UTI Energy reported its first-quarter 2025 financial results, which surpassed analyst expectations. The company achieved an earnings per share of $0.0047, outperforming the anticipated loss of $0.04, and reported revenue of $1.281 billion, exceeding the forecasted $1.18 billion. Patterson-UTI’s strong performance was attributed to its innovative drilling technologies and focus on natural gas-powered equipment. The company returned $51 million to shareholders through dividends and share repurchases. Additionally, RBC Capital maintained its Outperform rating for Patterson-UTI Energy, emphasizing the company’s commitment to its financial strategy and potential for growth. The firm’s confidence in Patterson-UTI’s market strategy is reflected in its reiterated price target of $9.50. These developments highlight Patterson-UTI’s strategic focus and resilience amid oil price volatility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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