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On Tuesday, Barclays (LON:BARC) maintained an Equalweight rating on Halliburton (NYSE:HAL) but reduced the price target for the company’s shares from $29.00 to $26.00. The adjustment follows a cautious stance by the firm due to a challenging start to the earnings season. According to InvestingPro analysis, Halliburton appears undervalued at its current price of $20.70, with analyst targets ranging from $23 to $38.
The research firm’s analysts noted a reduction in their earnings projections for 2025 and 2026 by 8%, citing margin pressures. Halliburton expressed confidence that its international land and offshore operations would remain stable throughout the year. However, there was no clear guidance provided for North America as exploration and production companies (E&Ps) are weighing their options in the current environment.
Barclays also reduced its second-half completion and production (C&P) revenue and margin forecasts for Halliburton. The analysts emphasized that further risks to the downside could emerge, depending on the trajectory of oil prices in the near future.
The revised price target reflects the analysts’ concerns about the potential impact of these factors on Halliburton’s financial performance. Halliburton, a leading service provider to the energy industry, has yet to respond publicly to the updated analysis from Barclays. The company’s stock performance in the coming quarters could be influenced by how it navigates the challenges outlined by the analysts.
In other recent news, Halliburton Company reported its Q1 2025 financial results, revealing a mixed performance. The company’s earnings per share (EPS) fell slightly short of expectations at $0.60, compared to the forecast of $0.61. However, Halliburton exceeded revenue projections, reporting $5.4 billion against the anticipated $5.28 billion. Despite the revenue beat, the earnings miss and other market uncertainties led to a decline in investor sentiment. The company continues to focus on innovation and strategic acquisitions to enhance its competitive position. Analyst discussions highlighted concerns over potential slowdowns in North American activity and challenges in the Mexican market. Halliburton also anticipates flat to slightly down international revenue for the year, with expected solid free cash flow and plans to return at least $1.6 billion to shareholders.
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