'Investible Again As Clouds Start To Lift,' Barclays Upgrades Weatherford International

Barclays' David Anderson upgraded Weatherford International Plc (NYSE: WFT) with a price target of $8.00. The rating change comes after the company announced $1.1 billion in convertible debt and settled the Zubair change-order claim for $150 million.

Despite low expectations for the company, Anderson believes the stock will recover, partly due to the company eliminating prior liquidity issues. "With near-term liquidity issues resolved, shares of WFT should start to recapture substantial YTD underperformance as focus starts so shift towards potential recovery amid low expectations," said the analyst.

Related Link: Weatherford Upgraded To Overweight By Simmons, Sees 35% Upside

Additionally, Anderson noted Weatherford stock has been "heavily" underperforming oil prices since February, as the stock price remained "flat," while West Texas Intermediate crude oil jumped 65 percent. Due the underperformance, the analyst believes the company to be undervalued.

The analyst re-emphasized Weatherford's limited potential, however. "We emphasize the WFT story remains challenged with a highly levered balance sheet and a weaker operational position versus the Big 3 as the company doesn't possess the scale in either North America or internationally to compete in markets becoming increasingly integrated," stated Anderson.

Weatherford International closed Friday trading up 3.90 percent at $6.12.