Analysts’ Forecast for Weatherford before Its 3Q17 Earnings

Now, we’ll look at Wall Street analysts’ forecast for Weatherford International (WFT) before its 3Q17 earnings.

On October 10, 2017, ~74% of the Wall Street analysts tracking Weatherford International rated it as a “buy” or some equivalent. Approximately 24% rated the company as a “hold,” while the rest of the analysts rated it as a “sell” or some equivalent. Weatherford accounts for 2.9% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES fell 18% in the past year—compared to a 33% fall in Weatherford’s stock price.

In comparison, ~53% of the analysts tracking Core Laboratories (CLB) rated it as a “buy” or some equivalent. Approximately 47% rated the company as a “hold.”

From July 10, 2017, to July 13, 2017, the percentage of the Wall Street analysts recommending a “buy” or some equivalent for Weatherford increased from 73% to 74%. Analysts’ “hold” recommendations didn’t change during this period. A year ago, ~69% of the sell-side analysts recommended a “buy” for Weatherford.

On October 10, sell-side analysts’ mean target price for Weatherford was ~$6.0. Currently, Weatherford is trading at ~$4.1, which implies an ~46% upside at its current average price. Analysts’ mean target price for Weatherford was the same the previous month.

The average target price, surveyed among the sell-side analysts, for Oceaneering International (OII) was $27.3 on October 10. Currently, Oceaneering International is trading at ~$25.4, which implies nearly 7% potential returns at its current price. The average target price, surveyed among the sell-side analysts, for Oil States International (OIS) was $28.1 on October 10. Currently, Oil States International is trading at ~$25.7, which implies 9% upside at its current price.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.