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Wall Street’s Forecasts for Halliburton before Its 1Q17 Earnings

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Wall Street’s forecasts for Halliburton

In this article, we’ll look Wall Street analysts’ recommendations for Halliburton (HAL) before its 1Q17 earnings release.

In comparison, all the sell-side analysts tracking Key Energy Services (KEG) rated it a “buy” or some equivalent on April 7, according to data compiled by Reuters.

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Analysts’ rating changes for HAL

From January 7, 2017 to April 7, 2017, the percentage of analysts recommending a “buy” or some equivalent for HAL increased from 90% to 92%. Analysts’ “sell” recommendations have declined during this period. A year ago, ~81% of the sell-side analysts recommended a “buy” for HAL.

Halliburton comprises 0.22% of the SPDR S&P 500 ETF (SPY), which tracks the price and yield performance of the S&P 500 Index (SPX-INDEX).

The energy sector makes up 6.6% of the SPX-INDEX, which has increased 15% in the past year versus a 37% rise in HAL’s stock price.

Analysts’ target prices for HAL and its peers

Wall Street analysts’ mean target price for HAL on April 7 was ~$63.00. HAL is currently trading at ~$49.70, implying an ~27% upside at its current mean price. A month ago, analysts’ average target price for HAL was $64.20.

The mean target price, surveyed among the sell-side analysts, for Fairmount Santrol Holdings (FMSA) was $12.20 on April 7. FMSA is currently trading at ~$7.22, implying an ~69% upside at its average target price.

The mean target price, surveyed among the sell-side analysts, for Basic Energy Services (BAS) was ~$45.10 on April 7. BAS is currently trading at ~$32.30, implying a 40% upside at its average target price.

You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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