Street View: Analysts positive on Halliburton after 2027 outlook

Halliburton

Yesterday 12:21

** US oilfield services provider Halliburton HAL.N on Tuesday forecast mid-single-digit revenue growth in 2027, expecting efforts to restore energy production and rebuild inventories in the war-hit Middle East to support demand for oilfield equipment
** Shares closed up 1.9% on Tuesday after HAL beat third-quarter profit and revenue estimates
     
NORTH AMERICA RECOVERY NOT ESSENTIAL TO GROWTH 2027
** Jefferies ("buy") raises PT to $48 from $47, views 2027 framework as "achievable", with balanced assumptions, including flat North America revenue, sustained Middle East activity and no meaningful pricing uplift
** TD Cowen ("buy") raises PT to $48 from $47; says HAL's 2027 outlook aims to demonstrate confidence in margin expansion and shows it does not require North America (NAm) to deliver growth
** "Management sounded bullish about prospects in NAm frac, it's just not required to achieve guidance" - TD Cowen
** RBC ("outperform") raises PT by $1 to $46; says HAL was "saved by the guide," with Q4 core profit forecast implying a 7% sequential growth and 2027 outlook easing market concerns around the softer quarter
** But brokerage adds HAL's "international revenue mix is underweight relative to peers, which is a growth headwind if NAM remains flat"

(Reporting by Tyakshi Singh in Bengaluru)
((Tyakshi.singh@thomsonreuters.com))