Halliburton’s Strategic Shift and Technological Advancements Drive Buy Rating

Halliburton (HAL – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Daniel Kutz from Morgan Stanley maintained a Buy rating on the stock and has a $28.00 price target.

Daniel Kutz has given his Buy rating due to a combination of factors, including Halliburton’s strategic positioning and evolving business mix. The company has increased its exposure to more stable international markets, shifting its geographical market mix to approximately 60% international and 40% North America, compared to a 45%/55% split in 2019. This shift positions Halliburton more favorably against potential downcycles.
Additionally, within North America, Halliburton has focused its growth capital expenditures on high-return, quick payback opportunities with firmer contract terms, such as the Zeus e-frac, which constitutes about 40% of its fleet. Despite some anticipated challenges in the near term, such as tariffs and mobilization costs impacting margins, Halliburton expects a rebound in margins in the second half of 2025. The company’s confidence in its ZEUS IQ technology, which is expected to enhance productivity and recovery rates in unconventional markets, further supports the Buy rating.