Sterne Agee Reiterates Buy, $20 PT on Weatherford

Sterne Agee maintains its Buy rating and $20 price target on Weatherford WFT on possible upside to EPS and compelling valuation. Sterne Agee says, "We believe the risk/reward in WFT shares remains very compelling and there is possible upside to 2012/13 EPS depending on the pace on international improvement. In addition, given the later cycle nature of WFT's North American product line (particularly artificial lift), we expect WFT's North American margin performance to outpace the peers over the next few quarters. While we do still hold our breath a bit on international margin performance with WFT, it appears some progress is being made." WFT closed at $15.71 per share on Wednesday.