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Barron's: Take profits in Patterson-UTI after strong two-year run

It's time to lock in profits in Patterson-UTI Energy (PTEN), Barron's David Englander writes, after shares have surged 123% since July 2012.

While drilling demand shows signs of strengthening, Englander thinks PTEN shares likely reflect much of the good prospects, trading for an enterprise value of 4.8x next year's EBITDA and above their average 4.4x multiple since 2006.

Cowen analyst James Crandell warns to expect little improvement in dayrates from this point thanks to the aggressive adding of rigs by several contract drillers.

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