Wednesday, January 26, 2011

Weatherford (NYSE:WFT) Weighed Down by Higher Costs

Weatherford International (NYSE:WFT) was among the few of its peers to miss fourth quarter estimates, as higher costs weighed on the company.

FBR says, "In a quarter where peers handily beat expectations, Weatherford missed 4Q10 estimates on higher costs. We maintain our rating based on the company's disappointing quarter, preferring companies with more leverage to the North American pressure pumping business, such as Halliburton Company (NYSE: HAL)(Outperform). We also believe management's $2.30 EPS target for 2011 is a bit on the aggressive side, and we prefer to be more conservative in our estimate."

FBR Capital reiterates a "Market Perform" rating on Weatherford International (WFT), which was trading at $22.82, up $0.96, or 4.39 percent, as of 1:06 PM EST. FBR raised their price target on Weatherford from $22 to $26.

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