Patterson-UTI initiated with a Strong Buy at Raymond James

Raymond James analyst James Rollyson initiated coverage of Patterson-UTI with a Strong Buy rating and $28 price target as part of relaunching coverage of the oilfield services sector. A sustained period of underinvestment, coupled with rising energy transition pressures, set up the current oil supply situation, for "which there is no short term fix," Rollyson tells investors. Capital discipline and asset rationalization across the oilfield service sector has put a lid on how quickly the industry could ramp back up, which "portends a more bullish set up for a longer cycle with sustained free cash flow generation" and an extended period of strong margins, the analyst contends.