Freedom Broker lowers Halliburton stock price target to $32 on drilling slump

Published 23/07/2025, 16:10
Freedom Broker lowers Halliburton stock price target to $32 on drilling slump

Investing.com - Freedom Broker has reduced its price target on Halliburton (NYSE:HAL) to $32.00 from $35.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analysts maintain a bullish consensus on HAL with price targets ranging from $20 to $35, despite nine analysts recently revising earnings expectations downward.

The firm cited persistent low drilling activity that has negatively impacted Halliburton’s performance, with revenue declining year-over-year for the fourth consecutive quarter in the second quarter of 2025. The company’s revenue declined by 2.54% over the last twelve months, with gross profit margins at 18.17%, which InvestingPro analysis identifies as relatively weak for the sector.

Freedom Broker anticipates these negative trends will continue through the latter half of the year, prompting the downward adjustment in the price target.

During the most recent quarter, Halliburton executed a $257 million share buyback program, reducing outstanding shares by 1% quarter-over-quarter.

The research firm expects Halliburton to continue its share repurchase activity throughout 2025, supported by the company’s robust cash reserves, and maintains that the stock remains appealing for long-term investment at current levels.

In other recent news, Halliburton’s second-quarter 2025 earnings report revealed a slight miss on earnings per share (EPS) forecasts, posting an EPS of $0.55 against the expected $0.56. However, the company exceeded revenue expectations with a reported $5.51 billion, surpassing the forecasted $5.41 billion. UBS has lowered its price target for Halliburton to $20 from $21, maintaining a Neutral rating due to ongoing margin challenges. The firm highlighted that the company’s third-quarter implied adjusted operating income is tracking approximately 12% below previous forecasts. Stifel also adjusted its price target for Halliburton, reducing it to $29 from $31, while maintaining a Buy rating. Despite reducing its 2025-26 forecasts, Stifel expressed optimism that the recent earnings report could signal the end of downward revisions. These developments come amid broader discussions on the need for earnings estimates to stabilize before significant traction can be gained in the oil services sector.

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