Weatherford International's (WFRD) recent underperformance was due to near-term Middle East headwinds, but this pressure is temporary and a post-conflict recovery is expected to drive a meaningful acceleration in reigon activity, UBS Securities said in a note Wednesday.
The brokerage said the company is also well positioned to benefit from growing offshore and deepwater development activity, while improving Pemex collections support higher cash flow.
The pending NCSM acquisition also offers value creation opportunity through cost synergies and international expansion, with the company expected to hit its more than $15 million cost synergy target in 2027, according to the note.
UBS Securities upgraded Weatherford International to buy from neutral, and raised the price target to $114 from $113.
Price: $83.29, Change: $-0.29, Percent Change: -0.35%