Piper Sandler has revised its outlook on Weatherford (WFRD), reducing the company's price target from $80 to $62. The financial firm maintains a Neutral rating on the stock. This adjustment comes as both Weatherford and Baker Hughes (BKR, Financial) experienced notable declines in their share prices on Wednesday, with Weatherford falling 7% and Baker Hughes dropping 6%. In contrast, the oil services sector, represented by the exchange-traded fund OIH, saw a less pronounced decrease of 2%.
The downward adjustment in price targets and subsequent stock performance is largely attributed to significant reductions in earnings forecasts. Piper Sandler has decreased its 2025 EBITDA estimates for Weatherford by 19% and for Baker Hughes by 4%. These revisions suggest a cautious outlook on the financial performance of these companies in the coming years, potentially reflecting broader industry challenges or specific company issues.
