Patterson-UTI price target lowered to $16 from $17 at Citi

Citi lowered the firm’s price target on Patterson-UTI to $16 from $17 and keeps a Buy rating on the shares. To reflect “depressed” natural gas prices, the firm trimmed its U.S. rig count forecast in 2024 by 1.5% to 633 rigs with an assumption that Q1 is flat from Q4. There’s risk that gas activity could drive the count lower near term, but producers appear well hedged which may limit their appetite to drop drilling activity below maintenance, the analyst tells investors in a research note. Citi continues to tilt toward the international oilfield service names.