Weatherford Earnings: Second-Half Prospects Are Promising; Raising Fair Value to $93 From $85

Weatherford International delivered a very strong second-quarter performance, and we expect the second half of the year will prove similarly favorable. Given our fortified confidence in the firm’s near-term prospects, we’re raising our fair value estimate to $93 from $85 following results. We still view shares as overvalued, as we believe the market is extrapolating the rise in drilling and completions activity recently displayed across international and offshore markets. Activity will remain elevated, but we expect growth to decelerate near decade-end.