NEX - Patterson-UTI raised Helmerich & Payne cut at Morgan Stanley

Patterson-UTI Energy (PTEN +6.1%) is upgraded to Overweight from Equal Weight with a $12 price target at Morgan Stanley, while Helmerich & Payne (HP +3.0%) is downgraded to Underweight from Equal Weight with a $27 target at the same firm, but both stocks trade higher as crude oil rallies for a second straight day. Analyst Connor Lynagh sees a 9%-12% downside to 2022-23 consensus estimates for Helmerich & Payne vs. 2%-5% upside for Patterson-UTI as well as a more constructive near-term free cash flow outlook. Lynagh points to Patterson-UTI's pressure pumping business as having assets that are "meaningfully under-utilized" with outsized growth in the business relative to the drilling businesses of HP and PTEN, which he says is not fully reflected in the relative valuations of the two companies. Along with Patterson-UTI, Morgan Stanley taps Liberty Oilfield Services (LBRT +3.6%), NexTier Oilfield Solutions (NEX +4.0%) and Cactus (WHD +2.7%) as top plays

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Patterson-UTI raised, Helmerich & Payne cut at Morgan Stanley