Patterson-UTI price target lowered to $15 from $16 at Citi

Citi analyst Scott Gruber lowered the firm’s price target on Patterson-UTI to $15 from $16 and keeps a Buy rating on the shares. The firm says that while recovery hopes for U.S. drilling activity hinge upon the call on domestic gas, investors are also concerned about the potential for OPEC to add barrels squeezing out U.S. shale production via a drop in oil drilling. It estimates that each $10 drop in oil price would drive a drop of 35 rigs. However should this occur, then associated gas production would also taper which in turn would increase the demand for dry gas drilling, the analyst tells investors in a research note.