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