UBS Raises Price Target on Halliburton (HAL)
UBS reported on Wednesday that it has increased its price target on oilfield services company, Halliburton Company (HAL), but does not see the company reaching its potential until the second half of 2013.
The firm, which currently has a “Buy” rating on the company, has raised its price target on HAL from $48 to $53. This price target suggests a 24% increase from the stock’s current price of $40.23.
Looking ahead, the firm has raised its FY2014 estimates from $3.45 to $3.75, but has cut estimates for the first quarter of 2013 from 61 cents to 56 cents.
An analyst from the firm commented, “in North America, Halliburton is seeing modest price softness (less than 5%) in several low technology product lines (cementing, directional drilling, and coiled tubing). However, the price declines have not been widespread, nor are they escalating. Frac pricing remains under some pressure at the spot price level, but has generally stabilized for term contracts. We had anticipated Q1 would continue to be sluggish in N.Am and expect the market to stabilize in Q2 and into the 2H-13.”
Halliburton shares were mostly flat during Wednesday morning trading. The stock has increased 22% in the past year.
The Bottom Line
Shares of Halliburton Company (HAL) have a 1.24% yield, based on Wednesday morning’s price of $40.20.
Halliburton Company (HAL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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