Weatherford Rating Lowered to Underperform at BMO Capital Markets (WFT)
BMO Capital Markets cut shares of Weatherford (NYSE: WFT) from a market perform rating to an underperform rating in a research report sent to investors on Friday morning. The firm currently has $11.00 price target on the stock, down from their previous price target of $14.00.
“Weatherford (WFT) reported another messy quarter to close out 2012 as it continued to mop up its tax and other operational issues. Operating EPS of $0.1 was far below our $0.20 est. and consensus at $0.18 but in the scheme of things was largely irrelevant. Charges for professional fees ($43 mn), more Iraqi project hits ($64 mn) and a very high exit tax rate to balance the year were the big functional items. While its choke hold on ‘yesterday’s’ tax problems look largely established, they will go without official elimination of the material weakness. Reported improvement in working capital management and some FCF were profiled and a promise to eliminate FCP overhang in 2013 was good news. 1Q13 EPS guidance of $0.16-$0.18c with a 34% tax rate held some caveats as do other quarters (most notably on Iraq).,” the firm’s analyst wrote.
Weatherford opened at 11.32 on Friday. Weatherford has a 1-year low of $8.84 and a 1-year high of $17.75. The stock’s 50-day moving average is currently $12.61. The company’s market cap is $8.657 billion.
A number of other firms have also recently commented on WFT. Analysts at Susquehanna cut their price target on shares of Weatherford from $13.00 to $12.00 in a research note to investors on Thursday, February 28th. They now have a neutral rating on the stock. Separately, analysts at Sterne Agee raised their price target on shares of Weatherford from $13.00 to $14.00 in a research note to investors on Thursday, February 28th. They now have a buy rating on the stock. Finally, analysts at MLV Capital raised their price target on shares of Weatherford from $11.00 to $14.00 in a research note to investors on Thursday, February 28th. They now have a hold rating on the stock.
Fourteen equities research analysts have rated the stock with a buy rating, five have issued an overweight rating, twelve have issued a hold rating, and three have given a sell rating to the company’s stock. The company currently has a consensus rating of overweight and an average target price of $14.45.
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