Analyst Scott Gruber of Citi maintained a Buy rating on Halliburton (HAL – Research Report), retaining the price target of $33.00.
Scott Gruber has given his Buy rating due to a combination of factors influencing Halliburton’s financial outlook. The company’s first-quarter EBITDA is projected to slightly exceed market expectations, indicating a stable performance despite a challenging international environment. While international revenues are expected to decline slightly year-over-year, there is anticipated sequential growth abroad, suggesting potential for recovery.
Furthermore, Halliburton’s stock is currently priced as if there is a significant drop in EBITDA, which presents an opportunity for investors if the company performs better than these low expectations. The investment in frac optimization software is expected to stabilize margins, and potential capital expenditure reductions could enhance financial flexibility. Despite the risks associated with fluctuating crude prices, these strategic moves and the current stock valuation make Halliburton an attractive investment opportunity.
According to TipRanks, Gruber is a 5-star analyst with an average return of 11.1% and a 55.90% success rate. Gruber covers the Energy sector, focusing on stocks such as Diamondback, APA, and Helmerich & Payne.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $35.00 price target.
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