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HomeMarketHalliburton Stock Doubled in 2022. It Has More Upside, Says Analyst.

Halliburton Stock Doubled in 2022. It Has More Upside, Says Analyst.

Halliburton stock picked up a new fan on Thursday.

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David McNew/Getty Images

After a strong 2022, investors should still be pumped up for oil-services giant

Thursday, Benchmark analyst Kurt Hallead launched coverage of Halliburton stock (ticker: HAL) with a Buy rating and $50 price target.

The company “is in a strong position to benefit from increased [oil exploration and production] spending on international and offshore projects in the intermediate term and continue to generate industry leading returns in the U.S. frac market,” wrote Hallead in his research report.

He sees the company generating $6 billion in earnings before interest, taxes, depreciation, and amortization, or Ebitda, in 2024 and values the company at 6.6 times that amount. “at the lower end of its…historical range of 6 to 9 times.”

What’s more, Hallead sees Saudi Arabi resuming its role as price setter in global oil markets, which should keep benchmark prices above $70 a barrel. Oil is around $80 a barrel today.

Halliburton stock is down 1% in early trading Thursday following the bullish call. The
S&P 500
Dow Jones Industrial Average
are down 0.5% and 0.4%, respectively.

Halliburton stock is up about 2% year to date, after rising 108% in 2022.

Halliburton stock is very popular on Wall Street. With the new Buy rating, about 93% of analysts covering the company rates shares at Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%.

The average analyst price target is about $48, close to Hallead’s $50 mark.

Along with Halliburton, Hallead has Buy ratings on shares of oil-services firms
Oceaneering International
Baker Hughes
(VAL), and

He has Buy ratings on 10 stocks, and Hold ratings on four stocks:
Helmerich & Payne
Patterson-UTI Energy
(PTEN), and
Nabors Industries

He’s bullish about the sector. “The current energy-cycle dynamics reminds us of the 1995-2010 period when oil-service stocks outperformed the S&P 500 in 11 of 16 years,” he added in a launch report.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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