Dahlman Rose On Weatherford International After 4Q Miss

Dahlman Rose has published a research report on Weatherford International WFT after the company reported 4Q10 earnings results that missed expectations. In the report, Dahlman Rose writes "The 4Q10 earnings season has shown that greater exposure to Western oil companies relative to National Oil Companies (NOCs) yielded better international performance. NOCs, as in the Middle East and North Africa, typically prove slower to react to improving oil market fundamentals. WFT may benefit as these cycle laggards catch up. For instance, guidance that the five drilling string contract in Algeria may reach four strings by the end of 1Q11 suggests that progress may arrive soon. Likewise, increased absorption of manufacturing capacity may support the target for 35% incremental margins in 2011 and 2012. Delays continue to frustrate investors looking for tangible evidence in earnings, but we believe the light at the end of the tunnel remains visible." Dahlman Rose maintains its Buy rating and $34 price target. Weatherford International closed yesterday at $21.86.