WFRD Stock Forecast & Price Target

Weatherford International is poised for significant growth, with expectations of international revenues increasing by 2-3% in 2025, excluding Mexico and Russia, and a notable 5% revenue growth projected in the Middle East driven by recent contract wins. The company anticipates improving margins, with a projected 60 basis points increase by 2026 and 200 basis points in EBITDA margins expected over the next three years, indicating a robust operational performance even in a stable market environment. Additionally, the firm's history of delivering higher margins and free cash flow combined with anticipated share repurchase activity further strengthens the positive outlook for its stock valuation.

Weatherford International's stock is currently trading significantly below its long-term average EV/EBITDA multiple, highlighting a disconnect between market valuation and the company's recent high margins and free cash flow. Anticipated revenue declines of approximately 20% in Latin America due to PEMEX budget adjustments, coupled with pressures on EBITDA margins across various segments, suggest weakening financial performance. Additionally, the company's reliance on letters of credit and potential supply chain issues, such as increasing costs for raw materials that cannot be passed on to customers, further exacerbate the risks to its business operations and market position.