Wall Street’s forecast for Weatherford International
In this part of the series, we’ll look at Wall Street analysts’ forecasts for Weatherford International (WFT) stock as of April 13, 2017.
On April 13, 2017, approximately 74.0% of analysts tracking Weatherford International rated it a “buy” or some equivalent. About 20.0% rated the company a “hold” or equivalent. Only 6.0% of the analysts recommended a “sell” or equivalent.
Weatherford makes up 3.2% of the iShares US Oil Equipment & Services ETF (IEZ). The energy sector makes up 6.6% of the SPDR S&P 500 ETF (SPX-INDEX). The SPX-INDEX rose 12.0% in the past year compared to a 17.0% fall in WFT stock.
By comparison, approximately 52.0% of analysts tracking TechnipFMC (FTI) rated it a “buy” or equivalent. About 40.0% rated the company a “hold.” FTI is WFT’s larger market cap peer in the oilfield services industry.
Analysts’ rating changes for WFT
From January 13, 2017, through April 13, 2017, the percentage of analysts recommending a “buy” or some equivalent for WFT has risen from 70.0% to 74.0%. A year ago, ~74.0% of sell-side analysts recommended a “buy” for WFT.
Analysts’ target prices for WFT
Wall Street analysts’ mean target price for WFT on April 13, 2017, was $7.68. WFT was trading at $6.06 on April 13, implying ~27.0% upside to its current mean target price. A month ago, analysts’ average target price for WFT was $7.46. Read more about WFT’s valuation in What Does Weatherford’s Relative Valuation Suggest?
Target prices for WFT’s peers
The mean target price surveyed among sell-side analysts for Key Energy Services (KEG) was $32.30 on April 13, 2017. KEG was trading at ~$23.80 on that day, implying a 36.0% upside to its average target price.
The mean target price surveyed among sell-side analysts for Basic Energy Services (BAS) is $45.10. BAS was trading at ~$33.90 on April 13, implying a 33.0% upside to its average price.
Learn more about the OFS (oilfield services and equipment) industry in Market Realist’s What Oilfield Services Companies’ Forward Multiples Indicate.