Jefferies Cuts Price Target on Weatherford (WFT) to $8; Reiterates Buy

Jefferies maintained a Buy rating on Weatherford International (NYSE: WFT), and cut the price target to $8.00 (from $9.00) on exchangeable note dilution. Jefferies assumed the exchangeable notes go towards repaying the company's existing debt, and assume the exchange for shares occurs a year from now.

Analyst Brad Handler commented, "WFT has likely lowered its near-years debt repayment burden with its recent exchangeable notes. Coupled with the apparent $150MM of settlement for Zubair, which lifts confidence regarding positive FCF in 2016 and that revolver availability is adequate, WFT is better positioned than it seemed earlier this year. We lower our PT to $8 on exchangeable note dilution. Much has to go right for us to be enthusiastic, but our base case sustains our Buy rating."

For an analyst ratings summary and ratings history on Weatherford International click here. For more ratings news on Weatherford International click here.

Shares of Weatherford International closed at $6.12 yesterday.

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