Weatherford stock initiated with Neutral rating at UBS on valuation concerns

Investing.com - Weatherford International plc (NASDAQ:WFRD) received a Neutral rating initiation from UBS on Tuesday, with an $82.00 price target. Currently trading at $76.71, InvestingPro data shows the stock is trading near its Fair Value, with a P/E ratio of 14.01.

UBS cited Weatherford’s diversified oilfield services business with a favorable international revenue mix, where 80% of revenue comes from international markets and 20% from North America. This international focus has helped the company generate $4.97 billion in revenue over the last twelve months.

The firm highlighted several positive catalysts for Weatherford, including Mexico transitioning from a headwind to tailwind, continued momentum in managed pressure drilling globally, increasing activity in the Middle East and North Africa region, and steady margins. InvestingPro data confirms the company’s solid financial position with a gross profit margin of 31.49%.

Despite these positive factors, UBS believes they are already reflected in Weatherford’s stock price following its 91% increase from 2025 lows, suggesting limited upside potential at current levels. This aligns with InvestingPro data showing a remarkable 76.3% price return over the past six months.

The $82 price target represents a 5.25x multiple on fiscal year 2027 EBITDA, slightly above the company’s five-year average multiple of 5x, which UBS attributes to Weatherford’s strong margin profile and improving shareholder returns. For deeper insights and additional ProTips on Weatherford’s financial health, which InvestingPro rates as "GREAT," check out the comprehensive Pro Research Report available for this stock.

In other recent news, Weatherford International PLC reported mixed financial results for the third quarter of 2025. The company missed the earnings per share (EPS) forecast, posting an EPS of $1.12 compared to the expected $1.18. However, Weatherford exceeded revenue expectations, achieving $1.23 billion against the projected $1.17 billion. In another development, Piper Sandler has adjusted its price target for Weatherford, raising it from $79 to $80 while maintaining an Overweight rating. Additionally, Weatherford has entered a strategic partnership with Maersk Training to develop Managed Pressure Drilling training programs. This collaboration aims to set new standards in simulation-based learning for drilling operations, combining decades of expertise from both companies. These recent developments highlight Weatherford’s ongoing efforts to enhance its industry standing through strategic initiatives and financial performance.

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