Credit Suisse Reiterates Outperform, Lowers Price Target On Weatherford International On Credit Where Credit Is Due

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In a report published Friday, Credit Suisse analyst James Wicklund reiterated an Outperform rating on
Weatherford International PLCWFT
, but lowered the price target from $17.00 to $13.00. In the report, Credit Suisse noted, "WFT reported fourth quarter earnings into a market of high skepticism, on topics of free cash flow (FCF) generation, debt rating, and impact of the lower oil price down-cycle. The company's reserve of investor goodwill is low and concerns about a debt rating downgrade are a large part of investor focus. We are constructive on the stock, especially relative to peers. The debt rating could be lowered, and we should know within weeks but after paying down $1.1 billion in debt in Q4 (net debt equals $7.051 billion) and having $2.0 billion of existing liquidity, while financing costs could move up slightly, the ability of the company to weather the downturn is not in doubt. TP to $13 from $17." Weatherford International closed on Thursday at $11.53.
Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit SuisseJames Wicklund
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