Josh Silverstein, an analyst from UBS, has initiated a new Hold rating on Weatherford International (WFRD).
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Josh Silverstein’s rating is based on a combination of factors that reflect both the strengths and challenges facing Weatherford International. The company has a strong international presence, with a significant portion of its revenue derived from outside North America, and it holds leadership positions in several product lines. Positive trends such as the potential turnaround in Mexico, momentum in Managed Pressure Drilling (MPD), and increasing activity in the Middle East and North Africa (MENA) regions are seen as favorable drivers for the company’s outlook. However, these positives appear to be already factored into the stock price, which has seen a significant increase from its lows.
Despite the promising prospects, the forecasted revenue growth and EBITDA margins are largely in line with market expectations, suggesting limited upside potential. The company’s price target of $82 reflects a slight premium to its historical average EV/EBITDA multiple, acknowledging its strong margin profile and improving shareholder returns. Key risks include uncertainties around Mexico’s recovery, oil and gas price volatility, and broader macroeconomic conditions. Consequently, the Hold rating reflects a balanced view of the company’s potential and the risks involved.