JPMorgan Upgrades Halliburton (HAL) to Overweight

JPMorgan analyst Sean Meakim upgraded Halliburton (NYSE: HAL) from Neutral to Overweight with a price target of $32.00 (from $30.00).

The analyst comments "Dec 2022 price target of $32, based on a normalized MSD FCF/EV yield, which converts to a ~8x mid-cycle EV/EBITDA multiple on our normalized EBITDA. HAL is the largest and most liquid U.S. completions levered stock, and effectively the only remaining OFS pure-play large cap. Leader in U.S. onshore with underappreciated international exposure (particularly in land). With an improving supply-demand balance in the NAM pressure pumping market, we think Halliburton is primed to benefit from its leading position and realize net pricing gains. HAL’s strategic technology developments including Sperry drilling and HAL 4.0 create opportunity for idiosyncratic growth. We think HAL can generate solid FCF, particularly with greater capital discipline, which may support the initiation of cash returns to equity holders in the medium-term."

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 $27.44 yesterday.

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