Gabelli Maintains Buy on Weatherford International

Gabelli is out with its report today on Weatherford International WFT, maintaining Buy. In a note to clients, Gabelli writes, "While disappointing earnings, weather and political disruptions, a pending Foreign Corrupt Practices Act investigation and a material weakness in internal controls over financial reporting for income taxes have weighed on the stock, we believe the company is the most levered to oil and heavy oil drilling in North America and a recovery in international oilfield activity given its relatively younger product line, underpenetrated market position and investment in international infrastructure. The stock trades at 6.6x our 2012 EBITDA estimate, which is below peers trading at 8x on average and a 33% discount to our 2012 PMV of $29 per share." At the time of posting, shares of WFT were trading at $19.72, up 1.08% from Monday's close.