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Global Hunter Securities Downgrades Halliburton (HAL) to Neutral

October 18, 2012 7:59 AM EDT Send to a Friend
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Price: $74.02 +1.00%

Rating Summary:
    20 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 38 | New: 43
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Global Hunter Securities downgraded Halliburton (NYSE: HAL) from Buy to Neutral with a price target of $38.00.

"We keep going around the roundabout with HAL as it is once again calling the bottom for NAM, now targeting 1H'13. What's different this time is that it plans to take action by stacking crews rather than chase utilization and further drive down industry pricing. The change in strategy likely mitigates pumping margins from getting materially worse. Our take, however, is that there will be close to a million horsepower collectively sitting in yards across NAM and thus the road to recovery in pricing is a long ways off. As for international, it'll be a slow grind higher, with some positive glimmers of hope for 2H'13 in Saudi, China, Australia and LAM. We're taking our '13 EPS down ~10% to $2.71, which leads us to drop our rating to Neutral from Buy and our target to $38 from $40 as we believe paying 14x trough earnings is a suitable valuation, especially as we expect a bunny-slope shaped recovery."

For an analyst ratings summary and ratings history on Halliburton click here. For more ratings news on Halliburton click here.

Shares of Halliburton closed at $35.32 yesterday.




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