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Analysts’ Forecast for Halliburton after Its 4Q17 Earnings

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Analysts’ forecast for Halliburton

In this part, we’ll discuss Wall Street analysts’ forecast for Halliburton (HAL) shares following its 4Q17 earnings release.

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Analysts’ rating for Halliburton

On January 22, 2018, the day Halliburton released its 4Q17 earnings, ~92% of the analysts tracking Halliburton rated it as a “buy” or some equivalent. Approximately 5% rated the company as a “hold” or some equivalent, while only 3% of the analysts rated it as a “sell.” Halliburton accounts for 3.6% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES decreased 16% in the past year—compared to a 3% rise in Halliburton’s stock price during the same period.

In comparison, ~47% of the Wall Street analysts tracking Core Laboratories (CLB) rated it as a “buy” or some equivalent on January 22, while ~53% rated it as a “hold.”

Analysts’ rating changes

From October 22, 2017, to January 22, 2018, the percentage of analysts recommending a “buy” or some equivalent for Halliburton has increased from 89% to 92%. Analysts’ “hold” recommendations decreased during the same period. A year ago, ~90% of the sell-side analysts recommended a “buy” for Halliburton.

Analysts’ target prices for Halliburton and its peers

On January 22, Wall Street analysts’ mean target price for Haliburton was $57.8. Halliburton is trading at ~$56.4, which implies ~2% upside at its current price. Analysts’ average target price for Halliburton was $53.2 a month ago.

The mean target price, surveyed among the sell-side analysts, for ION Geophysical (IO) was $13 on January 22. Currently, it’s trading at ~$18.3, which implies nearly 29% potential downside at its current price. Sell-side analysts’ mean target price for Superior Energy Services (SPN) was $12.1 on January 22. Superior Energy Services is trading at ~$11.3, which implies nearly 7% upside at its current price.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.

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