Halliburton (HAL) PT Lowered to $64 at Deutsche Bank; Reiterates Buy

Deutsche Bank lowered its price target on Halliburton (NYSE: HAL) to $64.00 (from $66.00) while maintaining a Buy rating.

Analyst Mike Urban commented, "With the pickup in North American (NAM) activity levels happening faster than many expected, HAL is shifting its strategy back to maintaining market share rather than pushing margins at this point in the cycle. In response to this pickup, HAL is returning equipment to the market much faster than expected. Management noted that they are deploying double the capacity they had planned for the entire year and doing so mostly in the first half. As one would expect, this will lead to upfront costs as crews are hired and mobilization/ reactivation costs are incurred without corresponding revenue until the fleets are deployed. The industry is also feeling cost inflation, especially around sand and trucking, although this will likely be transitory as more sand supply comes on-line in the spring and costs are passed through to customers. HAL is one of a very few players able to structurally lower cost (both their own and for their customers) and raise efficiency in otherwise commoditized businesses and should be able to leverage its NAM leadership into strong growth at attractive returns. We therefore reiterate our BUY rating."

You May Also Be Interested In

• Vertex (VRTX) PT Raised to $615 at UBS
• Procore Technologies, Inc (PCOR) PT Lowered to $56 at DA Davidson Amid 'Less Favorable' Construction Dynamics
• Kodiak Sciences Inc. (KOD) PT Lowered to $112 at Jefferies