Wall Street’s Forecasts for Weatherford after 1Q18 Earnings

As of April 24, after the 1Q18 earnings release, approximately 69% of Wall Street analysts tracking Weatherford International rate it a “buy” or some equivalent. Approximately 28% rate the company a “hold.” Only 3% of analysts recommended a “sell” or equivalent. Weatherford International is 2.4% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ tracks an index composed of US equities in the oil equipment and services sector. IEZ decreased 7% in the past year, versus a 51% fall in WFT’s stock price.

In comparison, 83% of Wall Street analysts tracking U.S. Silica Holdings (SLCA) rated it a “buy” or equivalent, while 13% rated it a “hold.”

From January 24 to April 24, the percentage of sell-side analysts recommending a “buy” or equivalent for WFT has decreased from 78% to 69%. A year ago, ~74% of sell-side analysts recommended a “buy” for WFT.

Wall Street analysts’ mean target price for WFT as of April 24 was $4.36. WFT is currently trading at $2.76, implying ~58% upside at its current price. A month ago, analysts’ average target price for WFT was $4.87.

The mean target price surveyed among sell-side analysts for Superior Energy Services (SPN) was $11.9 as of April 24. SPN is currently trading at ~$9.9, implying 21% upside at its current price.

The mean target price surveyed among sell-side analysts for Key Energy Services (KEG) was $17.1 as of April 24. KEG is trading at ~$14.6, which implies 17% upside at its current price.

Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.