Zacks Investment Research upgraded shares of Halliburton Company (HAL) from UNDERPERFORM to NEUTRAL on September 04, 2012, with a target price of $34.00.
Following Halliburton's second quarter earnings beat and the easing costs for guar gums – a key component in the company's market-leading hydraulic fracturing' procedure -, we are recalibrating our investment thesis on the oilfield services behemoth to Neutral from Underperform. Houston-based Halliburton recently reported better-than-anticipated June quarter results on the back of higher activity in the international markets. The company also stands to gain from the declining prices of guar gum. Moreover, at current multiples, which are significantly lower than peers, we have a difficult time justifying an Underperform rating. While being incrementally more positive on Halliburton, the increased pricing pressure in its North American operations keeps us on the sidelines.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Halliburton Company (HAL),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment