Patterson-UTI price target lowered to $11 from $12 at Raymond James

Raymond James lowered the firm’s price target on Patterson-UTI (PTEN) to $11 from $12 and keeps a Strong Buy rating on the shares. Softer completion services results dragged down solid drilling results in the quarter, resulting in an adjusted EBITDA shortfall of 4% relative to Street expectations despite a beat on revenue, the analyst tells investors in a research note. Next year will get off to a slower start, but Raymond James expects a stabilization in the market coupled with lower year over year CapEx, leading to another year of solid free cash flow performance.