A number of Wall Street analysts has issued upbeat opinions on Weatherford's (WFT) decision to hire former Halliburton (HAL) CFO Mark McCollum as its CEO, effective next month. Capital One responded to the news by upgrading Weatherford, while research firm Gabelli wrote that the appointment increases the chances of Halliburton eventually acquiring Weatherford.

NEWS: Weatherford last night announced that it had hired Halliburton CFO Mark McCollum as its president and CEO, effective late April. "McCollum is a proven executive with an impressive background spanning over 36 years in the energy sector," Weatherford stated.

UPGRADE: "Weatherford could not have made a better hire," proclaimed Capital One analyst Luke Lemoine, who upgraded the stock to Overweight from Equalweight. The hire increases the "legitimacy and credibility" of Weatherford's turnaround, Lemoine believes. Although Weatherford still faces many hurdles, including its need to stabilize its operational performance and improve its cash conversion, "new leadership" can fix all of its major issues, said the analyst, who placed a $7 price target on the stock.

POTENTIAL TAKEOVER TARGET FOR HALLIBURTON: McCollum's appointment increases the chances of Halliburton buying Weatherford "down the road," wrote Gabelli analyst Simon Wong. Weatherford's products dovetail well with Halliburton's strategy, making the latter company the most likely acquirer of Weatherford, Wong believes. Moreover, Weatherford and Halliburton have different areas of strength, said the analyst, who kept a Buy rating on the shares.

OTHER TAKES: McCollum's hiring increases Weatherford's credibility and is" a de facto blessing" of the restructuring efforts it has undertaken over the past several years, wrote Credit Suisse's James Wicklund. The analyst reiterated a $9 price target and an Outperform rating on Weatherford. Loop Capital analyst Stephen Gengaro said he is more confident in Weatherford's outlook under Mccollum's leadership than he was with interim CEO Krishna Shrivram at the helm. McCollum has been a critical part of Halliburton's success since taking over as CFO in 2008 and Weatherford "would have been hard-pressed to find a better choice" as CEO, Gengaro tells investors. The analyst reiterated a Buy rating and an $8 price target on Weatherford.

PRICE ACTION: In early trading, Weatherford jumped over 14% to $6.74 per share, while Halliburton shares slid about 1%.