Why This Weatherford Analyst Is Bullish On Oil Play

Weatherford International plc WFRD shares were climbing in trading on Friday.

After staging a “remarkable turnaround” in 2019 and 2020, the company was now generating a “very strong” adjusted EBITDA margin, estimated to reach 23.0% in 2023, second only to Schlumberger NV SLB “among Big 3 Diversified OFS, according to BofA Securities.

The Weatherford International Analyst: Saurabh Pant initiated coverage of Weatherford International with a Buy rating and price target of $120.

The Weatherford International Thesis: The company’s new CEO Girish Saligram refocused operations on the core technology strength “with operational rigor & financial discipline while moving ahead on customer focus and digital transformation,” Pant said in the initiation note.

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Weatherford International has become a lean and highly profitable international-levered diversified OFS company, the analyst stated.

Pant added that upside could be driven by the company’s continued revenue and margin expansion led by international markets, balance sheet optimization, and “our expectation of WFRD initiating shareholder distributions in 2H24.”

WFRD Price Action: Shares of Weatherford International had risen by 2.54% to $97.17 at the time of publication Friday.

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