In a report released yesterday, Saurabh Pant from Bank of America Securities reiterated a Buy rating on Halliburton, with a price target of $24.00.
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Saurabh Pant has given his Buy rating due to a combination of factors that highlight Halliburton’s potential for growth despite some short-term challenges. The company’s second-quarter earnings per share and EBITDA were slightly below expectations, mainly due to lower margins in their Completion & Production segment. However, Halliburton’s free cash flow exceeded expectations, which is a positive indicator of financial health.
Despite a softer outlook for the oilfield services market in the near to medium term, Halliburton’s focus on unconventional resources, drilling, and production services positions it well for future growth. In North America, the company’s technological advancements and service execution are expected to give it a competitive edge. Additionally, Halliburton’s strong international leverage and robust free cash flow yield support a positive long-term outlook, justifying the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $26.00 price target.
HAL’s price has also changed moderately for the past six months – from $28.480 to $21.390, which is a -24.89% drop .