Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - UBS lowered its price target on Halliburton (NYSE:HAL) to $20 from $21 on Wednesday, maintaining a Neutral rating on the oilfield services company amid ongoing margin challenges. According to InvestingPro data, the stock currently trades at $21.69, with analyst targets ranging from $20 to $35, suggesting the company is currently undervalued based on Fair Value analysis.
The price target reduction follows Halliburton’s second-quarter earnings miss, which UBS attributed to pricing pressure in the company’s operations. The firm noted that third-quarter implied adjusted operating income is tracking approximately 12% below previous Street forecasts. InvestingPro data reveals a concerning gross profit margin of 18.17%, with 9 analysts recently revising their earnings expectations downward.
UBS highlighted persistent concerns regarding North American and Saudi Arabian activity levels, which continue to weigh on Halliburton’s overall performance and outlook. Despite these challenges, InvestingPro’s Financial Health Score remains GOOD, with liquid assets exceeding short-term obligations. Subscribers can access 6 additional ProTips and comprehensive analysis in the Pro Research Report.
Despite these challenges, UBS identified Halliburton’s Zeus electric fracturing fleet as a "bright spot" in the company’s portfolio. The analyst noted that margins for the Zeus e-fleet continued to outperform the broader diesel market.
UBS also observed that Halliburton has been successfully renewing and extending expiring contracts for its Zeus e-fleet at "supportive levels," providing some positive momentum amid broader company challenges.
In other recent news, Halliburton reported its second-quarter 2025 earnings, revealing a slight miss on earnings per share (EPS) forecasts, with an EPS of $0.55 compared to the expected $0.56. However, the company exceeded revenue expectations by reporting $5.51 billion, surpassing the anticipated $5.41 billion. In related developments, Stifel lowered its price target for Halliburton from $31.00 to $29.00, though it maintained a Buy rating on the company. Stifel’s adjustment reflects revised forecasts for 2025-26, with the firm expressing optimism that Halliburton’s recent earnings report could signal an end to downward revisions. The firm also mentioned that earnings estimates might need to bottom out before oil service company stocks can gain significant traction. These updates provide investors with insights into Halliburton’s current financial performance and future outlook as assessed by analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.