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On Wednesday, Stifel analysts adjusted their outlook on Halliburton stock, reducing the price target to $32.00 from the previous $37.00, while still maintaining a Buy rating on the shares. The revision came after Halliburton’s shares experienced a decline of 5.6%, in contrast to the S&P 500, which saw a 2.5% increase. This drop followed Halliburton’s first-quarter earnings for 2025, which did not meet expectations, and guidance for the second quarter that did not inspire confidence among investors.
Despite the weaker-than-anticipated results and the subsequent lowering of the price target, Stifel’s analysts noted Halliburton’s continued ability to generate and return strong free cash flow (FCF). They also highlighted the company’s commitment to significantly improving its drilling and exploration (D&E) margins in the second half of 2025.
The cautious stance taken by Stifel is attributed to several factors that introduce uncertainty into the market. The analysts cited concerns over tariffs and the decisions of OPEC+ as contributing to the uncertainty that has led them to adopt a more conservative approach to their forecasts. As a result, the firm has revised downward its earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates for Halliburton for the years 2025 and 2026.
Halliburton, listed on the New York Stock Exchange under the ticker (NYSE:HAL), is a prominent player in the oilfield services industry. The company’s financial performance and future guidance are closely watched indicators of the sector’s health and resilience amid fluctuating oil prices and geopolitical factors affecting the energy market.
In other recent news, Halliburton reported mixed financial results for the first quarter of 2025. The company slightly missed earnings per share (EPS) expectations, reporting $0.60 compared to the forecast of $0.61. However, Halliburton exceeded revenue projections, bringing in $5.4 billion against an anticipated $5.28 billion. Despite the revenue beat, the company’s stock experienced a decline, reflecting investor concerns over the earnings miss and potential challenges ahead. Barclays (LON:BARC) maintained an Equalweight rating on Halliburton but reduced the price target from $29.00 to $26.00, citing margin pressures and a cautious outlook for future earnings. The firm also adjusted its revenue and margin forecasts for Halliburton’s completion and production segments for the latter half of the year. Halliburton has not publicly responded to Barclays’ updated analysis. The company remains focused on its international operations, with expectations of stable performance in these areas, while uncertainties persist in North America.
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