As previously reported, Bernstein analyst Colin Davies initiated Patterson-UTI with an Outperform rating and $21 price target, telling investors in a research note that the company benefits from "super-spec" rigs but is dragged down by a pullback in the U.S. fracking market. Davies believes the stock will re-rate in 2019 as Permian issues abate, contending that the company's Permian-exposed frac business will suffer from lower activity and pricing in the near-term, but activity should find a floor in early 2019 and the stock will begin to anticipate rapidly improving conditions.