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On Tuesday, Stifel adjusted its price target for Halliburton (NYSE:HAL) shares, a leading company in the U.S. completions market, to $46.00 from the previous target of $47.00. The firm, however, continues to endorse a Buy rating for the stock. The revision reflects Halliburton's significant involvement in the U.S. pressure pumping market and its status as a preferred large-cap name for U.S. land exposure.
Halliburton is recognized for its consistent growth and industry-leading returns on capital. Stifel anticipates a boost in U.S. profitability for Halliburton in 2024, driven by increasing U.S. land activity, a tightening pressure pumping supply/demand dynamic, and rising prices. Additionally, the firm expects international activity and pricing to experience an upward trend.
Despite the company's substantial progress internationally over the past decade, Stifel notes that U.S. profitability remains a central element of Halliburton's business narrative.
The firm acknowledges that Halliburton's stock may experience volatility due to positive and negative U.S. market data points. Nevertheless, Stifel forecasts that escalating earnings will likely propel the stock's value upward in the future.
In other recent news, Halliburton has seen noteworthy changes in analysts' expectations. BofA Securities adjusted its price target for Halliburton from $45.00 to $41.00, while maintaining a Buy rating.
Citi also trimmed its price target from $50 to $45, keeping a Buy rating. JPMorgan reaffirmed its Overweight rating on Halliburton, with a steady price target of $45.00. TD Cowen raised its price target from $47 to $48, maintaining a Buy rating.
These adjustments come after Halliburton reported significant international revenue growth in Q1 2024, reaching $5.8 billion. Despite an 8% year-over-year decrease in North American revenue, the company still managed a 5% increase over the previous quarter. Citi has revised Halliburton's Q2 revenue estimate to $5.93 billion and the EBITDA estimate to $1.33 billion, both down by 1%.
In addition, Halliburton secured a contract from Rhino Resources Ltd. to conduct a series of deep-water well constructions in Namibia. This move is expected to unlock the potential of the Namibian oil and gas sector. These are recent developments that may interest investors keeping an eye on Halliburton's performance and future prospects.
InvestingPro Insights
InvestingPro data highlights Halliburton's robust market presence with a market capitalization of $31.19 billion and a P/E ratio of 12.28, reflecting investor confidence in the company's earnings potential. Specifically, the adjusted P/E ratio for the last twelve months as of Q1 2024 stands at an even more attractive 11.49, paired with a PEG ratio of 0.36, indicating that the stock may be undervalued relative to its earnings growth. Additionally, the company's revenue growth for the same period is 6.71%, showcasing its ability to expand financially.
Two InvestingPro Tips shed light on Halliburton's investment profile. The company is trading at a low P/E ratio relative to near-term earnings growth, which might appeal to value investors looking for growth potential at a reasonable price. Moreover, Halliburton has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns. For those seeking more detailed analysis, InvestingPro offers additional tips on Halliburton, available at https://www.investing.com/pro/HAL. To access these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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