(WFT) Weatherford International – Bear of the Day

October 15th, 2012

We are maintaining our recommendation on Weatherford International Ltd. (WFT) at Underperform following the delay in the reporting of income taxes due to the material weakness in internal controls. Weatherford expects weather-related issues in Canada and a poor-margin Iraqi contract to hurt operations and lower average output in 2012.

Low gas prices also remain a concern. Other risks faced by Weatherford are geopolitical, commodity and financial market risks. Given these headwinds, we expect shares of Weatherford to
be under pressure in the near future.

Considering these factors, we see little reason for investors to own the stock and therefore we are maintaining our recommendation at Underperform. Our $11 price objective is based on 10.8x our 2012 EPS estimate.

Zacks Investment Research

More on this topic (What's this?)
Report on Weatherford International Ltd (NYSE:WFT) (Penny Stock DD, 10/18/11)
Read more on Weatherford International at Wikinvest

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