Weatherford Received its Third Buy in a Row

By Jason Carr

After BMO Capital and Nomura Holdings assigned a Buy rating to Weatherford in the last month, the company received another Buy, this time from Jefferies. Analyst Brad Handler reiterated a Buy rating on Weatherford (NYSE: WFT) today and set a price target of $7. The company’s shares closed yesterday at $5.06.

Handler wrote:

“The departure of the CEO reflects an important milestone for the company, in our view. We have to imagine that the recently refocused WFT should see no change in direction, yet, we think Bernard’s exit strengthens a culture of accountability and, we imagine, can improve morale. Maintain Buy on our view of earnings potential and strong relative recovery prospects. We publish estimates incorporating 3Q16 results and lower our PT to $7. The face of WFT steps down. Bernard Duroc Danner has been at the helm since his EVI bought WFT in 1998. In other words, a generation (or two) of investors have only known Bernard and his relentless emphasis, up until fairly recently, on growth. WFT has, in our view, changed and bolstered much in terms of its capability to manage its diverse and geographically far flung set of businesses. We think it should be easier for investors to be optimistic about progress with a new CEO.”

According to TipRanks.com, Handler is ranked 0 out of 5 stars with an average return of -4.2% and a 45.8% success rate. Handler covers the Basic Materials sector, focusing on stocks such as Diamond Offshore Drilling, Oceaneering International, and Basic Energy Services.

Currently, the analyst consensus on Weatherford is Strong Buy and the average price target is $8, representing a 58.1% upside.

In a report issued on November 4, Nomura Holdings also reiterated a Buy rating on the stock with a $8 price target.

The company has a one year high of $11.21 and a one year low of $3.73. Currently, Weatherford has an average volume of 23.42M.

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates its business through following segments: Formation Evaluation & Well Construction and Completion & Production. The Formation Evaluation & Well Construction segment offers services such as controlled-pressure drilling and testing, drilling, tubular running, drilling tools, integrated drilling, wireline services, re-entry and fishing, cementing, liner systems, integrated laboratory services and surface logging. The Completion & Production segment pertains for service lines, including artificial lift systems, stimulation and chemicals, completion systems and pipeline and specialty services. The company was founded in 1941 and is headquartered in Geneva, Switzerland.