J.P. Morgan Lowers Price Target and EPS Estimates for Weatherford International (WFT)

J.P. Morgan is out with a report today which discusses analysts' newly lowered estimates for the 2011 and 2012 EPS of Weatherford International WFT. The revised estimates are the result of updated guidance provided by Weatherford management in an 8-k released today. 1Q11 EPS has been guided down to $0.18 due to disruptions in Tunisia, Egypt, and Libya, as well as weather-related effects in Australia.

The report also states that income taxes are expected to be 27% for 2011, which was increased from the 20% previously guided. JPM analysts have raised expected taxes for all future quarters. Therefore, 2011 and 2012 EPS have been lowered to $1.05 (from $1.25) and $1.70 (from $1.90), respectively.

JPM analysts maintain a Neutral rating for WFT. This rating is based on Weatherford's uncertain growth prospects and relatively high operational and financial risk. The price target has been lowered to $24. It is currently trading at $20.05.