- Weatherford (WFT -6.2%) is sharply lower, like all of its oilfield service counterparts, after Imperial Capital initiates coverage with an In-line rating and $7 price target.
- Imperial says that while WFT's recent financing activity eases excessive concerns about liquidity, and stabilizing commodity price trends are encouraging, it prefers more evidence of fundamental improvement in earnings and cash flows to before turning more positive.
- The firm believes WFT has substantial leverage to a potential recovery in E&P activity, with a recovery looking increasingly likely given the recent stabilization in commodity prices as well as early signs of an upturn in rig count.