Patterson-UTI upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded Patterson-UTI (PTEN) to Buy from Neutral with a price target of $10, down from $11, implying 28% upside from current levels. The firm remains “conservative” on the outlook for activity in North America into 2025 and sees activity declining by 2% year-over-year, but believes the potential for strength in gas related activity is likely to be “asymmetrically positive” for Patterson-UTI in 2025. It sees the strongest combination of return for every dollar invested between dividends, share repurchases and upside to consensus in Patterson-UTI among the North America energy services stocks.