UPDATE: Pritchard Raising Price Target On Weatherford

Pritchard Capital is out with a research report on Weatherford International Ltd. WFT and is raising its price target to $29 from $20, and it has a Buy rating on shares. In a note to clients, Pritchard Capital writes, "With a rebound in international markets seemingly coming into focus, we are increasing our earnings estimates to reflect that trend as well as continued strength in the U.S market. Applying a 17x forward P/E multiple to our revised 2012 eps estimate of $1.71 -- up vs. $1.41 previously -- yields a revised target of $29. The 17x multiple is roughly WFT shares' average over the past five years. We used a 14x previously to incorporate our view of the higher than normal risk associated with WFT's earnings estimates. We think particular pockets of strength could be Argentina, Brazil, and Columbia in the Latin American region; Russia in Europe/West Africa/CIS; and Algeria, Iraq, Kuwait and Saudi Arabia in Middle East/North Africa. We have been awaiting a rebound in Algeria where WFT has had five strings deployed but underutilized for some time. In North America, we anticipate stronger momentum from the Artificial Lift product line; the North American portion accounts for roughly 11% of WFT's total revenue. Pricing and increasing oil-focused drilling should become evident in second-half results for this portion of the company. In addition to razors (new units), this business has a potentially significant blade (aftermarket service) portion. Upgrading to 'Buy' with $29 target." Shares of WFT closed at $22.49 yesterday.