Citi Lowers Halliburton Price Target Amid Softer Domestic Market
Citi analysts lowered their price target for Halliburton (NYSE:HAL) to $45 from $50 while maintaining a Buy rating on the stock. The analysts cited a slightly weaker domestic frac market as the reason for adjusting the company's financial estimates. Q2 revenue estimate has been trimmed by 1% to $5.93 billion, with EBITDA also reduced by 1% to $1.33 billion, which remains 1% above Street estimates.
For Q3, North American revenues are expected to remain flat at $2.6 billion, while Q4 revenues are projected to decline by 7% sequentially to $2.41 billion due to anticipated seasonal weakness and efficiency gains in frac operations. Despite these challenges, international operations are expected to remain strong, with a forecast of 5% sequential growth in Q3 and 4% in Q4, contributing to a 10% year-over-year increase.
Citi’s Q3 EBITDA estimate stands at $1.39 billion, aligning with Street estimates, while the Q4 forecast is set at $1.37 billion, 5% below consensus. Looking ahead to 2025, Citi anticipates 4% growth in North America and 7% internationally, driving total EBITDA to $5.79 billion, which is 6% below previous expectations and 4% below Street estimates.
| Symbol | Price | %chg |
|---|---|---|
| ELSA.JK | 444 | 0 |
| SHIP.JK | 930 | 0 |
| SUNI.JK | 494 | 0 |
| CTBN.JK | 1090 | 0 |
Wolfe Research Targets Halliburton (HAL) with $52 Price, Foresees 34% Upside
Wolfe Research Sets New Price Target for Halliburton (HAL:NYSE)
Sam Margolin of Wolfe Research has recently set a new price target for Halliburton (HAL:NYSE) at $52, as reported by StreetInsider on April 23, 2024. This ambitious target suggests a significant potential upside of approximately 34.06% from HAL's trading price at the time of the announcement, which was $38.79. This optimistic outlook from Wolfe Research on HAL's future market performance is grounded in the company's recent financial achievements and operational strengths, particularly in its Completion and Production division and its growing international presence.
Halliburton's stronger-than-expected profits for the first quarter of 2024 have been a key driver behind this positive assessment. The company's Completion and Production division played a crucial role in this success, contributing to another quarter where Halliburton surpassed earnings estimates. This performance underscores the company's operational excellence and its ability to exceed investor expectations, as highlighted by Zacks Investment Research on the same day. The robust performance of this division is indicative of Halliburton's strategic focus and operational efficiency, which have been instrumental in its financial success.
Furthermore, Halliburton's growing strength in international markets has been a significant factor in its financial performance, helping to mitigate the effects of a slowdown in North America. An increase in drilling demand from international markets has been pivotal, as reported by Reuters on April 23, 2024. This international expansion not only diversifies Halliburton's revenue streams but also reduces its dependence on the North American market, positioning the company for sustained growth in the face of regional market fluctuations.
The financial results for the first quarter of 2024 further solidify Halliburton's strong market position. With a net income of $606 million, or $0.68 per diluted share, and an adjusted net income of $679 million, or $0.76 per diluted share, Halliburton demonstrates its financial resilience. Although there was a slight decrease from the first quarter of 2023, the company still managed to achieve modest revenue growth, with total revenue reaching $5.8 billion, marking a 2% increase from the same period in the previous year. This financial stability, combined with a strategic focus on international markets and operational excellence, forms the basis of Wolfe Research's optimistic outlook for Halliburton.
Currently, Halliburton is trading at $38.59 on the NYSE, with a market capitalization of approximately $34.34 billion. Despite a slight decrease of $0.14 or -0.35% in its stock price, the company's performance over the past year—with a peak of $43.85 and a low of $27.84—reflects its market resilience and potential for growth. This trading activity, coupled with the company's solid financial results and strategic operational focus, supports the optimistic price target set by Wolfe Research, suggesting a promising future for Halliburton in the market.
