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Wall Street’s Take on Halliburton: Most Analysts Rate It a ‘Buy’

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Wall Street’s forecasts for Halliburton

In this series, we’ve discussed how Halliburton’s (HAL) stock has rallied down since its fiscal 3Q15 earnings. Now let’s look at Wall Street analysts’ recent forecasts for Halliburton.

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Consensus rating for Halliburton

Approximately 78% of analysts tracking Halliburton rate it a “buy” or some equivalent. Approximately 19% rate the company a “hold” or an equivalent, while 3% recommend a “sell.” Halliburton makes up 2.9% of the Energy Select Sector SPDR ETF (XLE).

In comparison, approximately 47% of analysts tracking Dril-Quip (DRQ) rate it a “buy” or some equivalent, while approximately 40% of analysts tracking DRQ rate it as a “hold,” and the rest as a “sell.”

Analysts’ recommendations for Halliburton

When it comes to individual recommendations, BMO Capital Markets, the investment banking subsidiary of the Canadian Bank of Montreal, gave HAL a target price of $45. HAL currently trades near $31, implying a ~46% return over the next 12 months. Jefferies, a global investment bank, gives HAL a target price of ~$42. This implies a 36% return over the next 12 months.

American investment bank Morgan Stanley (MS) gives HAL a 12-month target of $41. This implies a ~33% return from Halliburton over the next 12 months. JPMorgan Chase (JPM), another American investment bank, gave HAL a $43 target price, which implies a 49% return over the next 12 months. Investment bank Barclays’ (BCS) one-year target price for Halliburton is $40. This implies a ~30% return over the next year.

Analysts’ target prices for HAL

While the highest target price for HAL is $105, the lowest is $53. Surveyed among sell-side analysts, the median target price for HAL is ~$44. HAL is currently trading at ~$31, implying a ~44% upside at its median price.

Learn more on the oil and gas industry on Market Realist’s Energy and Power page. You can also read more about HAL in Halliburton: An In-Depth Overview of the Oilfield Industry Giant.

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