Weatherford Earnings: Valuation up to $85 From $79 on International Exposure; Shares Overvalued

We’re raising our fair value estimate to $85 from $79 for Weatherford International after the firm delivered another quarter of solid performance that rounded out a strong overall fiscal 2023. The firm’s geographic diversification proved favorable during the year. Annual revenue increased 19% year over year, mainly due to elevated drilling and well construction activity across Latin America, Europe, and Africa, which make up exactly half of Weatherford’s overall business. Profitability also continued its steady expansion, with adjusted EBITDA exiting the year near a 23.5% margin, and management indicated the firm will continue progressing toward its goal of 25% throughout 2024.