RBC Capital analyst Kurt Hallead lowered his price target on Patterson-UTI to $21 to reflect his expectations of lower 2019 and 2020 EBITDA of $704M and $823M - down from his prior view of $814M and $1.15B. The analyst notes that the company's U.S. frac operation "continues to be a drag", with the market looking "challenged and fragmented" as about 35 companies are "gurgling" on about 8M horsepower of spare capacity. Hallead also maintains his Outperform rating on Patterson-UTI longer term, citing its "balanced approach to capex, M&A, share repurchases, and dividend increases."