KLR Group Cuts Price Target After Weatherford (WFT) Announces Completion of Share Dilution

KLR Group maintained an Accumulate rating on Weatherford International (NYSE: WFT), and cut the price target to $8.00 (from $9.00), following the company's announced completion of a 100 million share offering, at $5.64/share. WFT earmarked the offering for “general corporate purposes, including the repayment of existing indebtedness”. WFT currently has $967 million drawn on its $2.25 billion revolver that matures in July 2017, that carries a 60% debt to capitalization ratio covenant.

Analyst Darren Gacicia commented, "We are lowering our price target to $8.00 from $9.00. The price target move reflects minimum dilution from the 100 million share secondary offering."

For an analyst ratings summary and ratings history on Weatherford International click here. For more ratings news on Weatherford International click here.

Shares of Weatherford International closed at $6.90 yesterday.

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