Weatherford (NYSE:WFT) Faces Risk Going Forward, Downgraded

Considered a high risk company and stock at this time, Weatherford International (NYSE:WFT) was downgraded by FBR Capital and Credit Agricole.

FBR lowered their rating from "Outperform" to "Market Perform," while Credit Agricole downgraded them from "Outperform" to "Underperform."

"We are downgrading WFT as we believe its risk/reward profile is less favorable than that of other stocks in our coverage group. In part, we believe the recovery in international markets will continue to be slower than many expect. This, coupled with the risk of how and when Weatherford settles the Foreign Corrupt Practices Act (FCPA) investigation and how the TNK-BP put is settled, adds an element of risk that we believe requires a higher potential return than we see in the stock," said FBR.

Weatherford closed at $17.37, gaining $0.20, or 1.14 on Wednesday. Credit Agricole has a price target of $18 on Weatherford, lowering it from $19, and FBR Capital dropped its price target on them from $23 to $21.