In a report released today, Marc Bianchi from TD Cowen maintained a Buy rating on Halliburton, with a price target of $35.00.
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Marc Bianchi has given his Buy rating due to a combination of factors that suggest a positive outlook for Halliburton’s stock. Despite some early underperformance, investors have reassessed the situation and believe that the company’s outlook might be conservative, with potential stabilization or improvement in Completion & Production (C&P) margins in the fourth quarter. This indicates that the weakness in U.S. Frac pricing is likely limited to the third quarter.
Moreover, Halliburton’s guidance for the third quarter suggests a manageable decline in revenue and margins, with expectations of improvement in the fourth quarter. The company anticipates maintaining or enhancing C&P margins due to strategic moves like dropping lower-profit frac crews and implementing cost savings. Additionally, Halliburton’s commitment to shareholder returns and improved cash flow management further supports the positive rating. These elements combined with a slightly adjusted price target based on updated financial models contribute to the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $26.00 price target.