Buoyant Prospects for Halliburton: A Comprehensive Buy Rating Analysis by Neil Mehta

Goldman Sachs analyst Neil Mehta has maintained their bullish stance on HAL stock, giving a Buy rating yesterday.

Neil Mehta has given his Buy rating due to a combination of factors impacting Halliburton’s performance and potential. Mehta recognizes the strength in Halliburton’s diversified portfolio, which boasts a balance of service lines and geographic exposures that uniquely position the company for robust near-term performance. Especially noteworthy is Halliburton’s ability to execute and provide capital returns in a time when the North American market activity levels are somewhat uncertain, and the international market growth is already well-understood by investors.
Furthermore, Halliburton’s strategic focus on technology and innovation, particularly in North America with tools like Zeus, is expected to continue propelling the company’s margins and solidifying its reputation for strong earnings execution. This focus on technology also grants Halliburton a defensive edge in a tumultuous market, making it an attractive choice for investors, bolstered by the appealing 7% free cash flow yield and 5% total capital returns. Additionally, the potential for increased activity and gas-related pricing benefits in the second half of 2024 or early 2025 in North America provides an opportunity for further upside, reinforcing Mehta’s Buy rating and the anticipated 18% stock price appreciation.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $54.00 price target.

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Halliburton (HAL) Company Description:

Halliburton Co. engages in the provision of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. It operates through the following segments: Completion and Production, and Drilling and Evaluation. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. The company was founded by Erle P. Halliburton in 1919 and is headquartered in Houston, TX.