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UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on Weatherford International

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In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating on Weatherford International (NYSE: WFT), but lowered its price target from $17.00 to $13.00.

J.P. Morgan noted, “We continue to rate Weatherford Overweight but with a Dec-13 price target of $13 (from $17) based on an 8x target P/E multiple of our 2014E EPS estimate. WFT currently trades at 5.8x our 2014E EPS, a 36% discount to the group average. Our 8x target multiple is a 33% discount to our large cap services group average target multiple of 12x, as we believe a discount is warranted given uncertainty surrounding WFT's alleged FCPA violation, its internal control issues, and its high debt balance; however, we believe WFT will see multiple expansion due to the higher visibility of its NA earnings from greater concentration to artificial lift, as well as boasting the highest int'l earnings potential within large cap services.”

Weatherford International closed on Tuesday at $9.55.

Latest Ratings for WFT

DateFirmActionFromTo
Feb 2015BMO CapitalInitiates Coverage onOutperform
Feb 2015JefferiesMaintainsHold
Jan 2015Deutsche BankMaintainsBuy

View More Analyst Ratings for WFT
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings

 

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