Oilfield services giant Halliburton (HAL) recently confirmed a cyberattack incident that forced the company to shut down certain systems. The company disclosed the breach on August 23, stating that an unauthorized third party had gained access to its system.
The company suspected an attack on August 21 and initiated an internal investigation into the matter. Initially, it described the situation as “an issue” affecting certain systems and networks, avoiding the term “cyberattack.”
Cyberattack’s Aftermath
The attack has disrupted business operations at Halliburton’s north Houston campus and global connectivity networks. Reports suggest that the incident may have compromised payroll databases and employee devices.
In response to the security breach, Halliburton said that it has activated its “cybersecurity response plan” and is working with external experts to address the incident. The company has taken steps to isolate the affected systems and is actively investigating the extent of the damage.
Rising Threat of Cyberattacks
The attack on Halliburton highlights the increasingly growing threat of ransomware attacks targeting critical infrastructure sectors, including energy. According to a report by Check Point Research, global cyberattacks have surged by 30% in the second quarter of 2024.
HAL’s breach follows several other cyberattacks in recent months. Last week, Microchip Technology (MCHP) disclosed a cyber breach that impacted its manufacturing facilities and order fulfillment capabilities. Furthermore, UnitedHealth Group’s (UNH) subsidiary, Change Healthcare, witnessed an attack in June, which caused significant disruptions to the U.S. healthcare payments system.
Is Halliburton a Good Stock to Buy?
On TipRanks, HAL has a Strong Buy consensus rating based on 14 unanimous Buy ratings assigned by analysts in the past three months. The analysts’ average price target on Halliburton stock of $44.36 implies 39.67% upside potential. Shares of the company have declined 12.6% in the past three months.
