UPDATE: BMO Capital Markets Raises PT to $20 on Weatherford International
BMO Capital Market raises its price target on Perform-rated Weatherford International (NYSE: WFT) to $20 dollars, focusing on the company's operational improvement to offset tax structure issues that has rattled investor confidence.
BMO Capital Market says, "We were encouraged by additional progression in operating results. Revenues were almost exclusively better than we had modeled and strength in Latam and NA margins resulted in stronger pretax operating income. It was Other Items that reduced the stronger EBIT considerably with higher FX/R&D/professional costs followed by its tax issue which remains in limbo for now. Net-net, its tough to get beyond the tax issue and as we've noted previously the stock likely requires greater long only interest to get beyond the $20/sh mark."
WFT closed at $17.79 a share on Tuesday.
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