What Wall Street Is Saying About Halliburton

Halliburton Company (NYSE: HAL) on Monday reported its first quarter results in which both earnings per share and revenue were reported higher than analysts expected.

Bank Of America: Onshore Recovery, Long-Term Benefits

In a report published Monday, Bank of America analyst Douglas Becker reiterated an Outperform rating on Halliburton with a price target hiked to $60 from a previous $57 as the company is "prime" to benefit from a rebound in activity given high exposure to U.S. onshore activity.

Becker added that while falling activity and pricing remains near-term headwinds, the company has "quickly" taken out costs and should post better operating margins than in the 2009 down-cycle.

Moreover, Becker noted he still believes Halliburton's planned acquisition of Baker Hughes Incorporated (NYSE: BHI) is "highly likely." The analyst added the deal will be approximately $0.40 accretive to Halliburton's estimated 2017 earnings per share forecast of $3.20.

Oppenheimer: Halliburton Remains A ‘Top Pick'

In a note released Monday, James Schumm of Oppenheimer reiterated an Outperform rating on Halliburton with a price target raised to $61 from a previous $60 as the company remains a "top pick."

According to Schumm, current North American financial results are not reflective of the company's earnings power while the Street is too negative on the international profitability outlook. The analyst noted Halliburton's frac stages were down 5 percent sequentially compared with a rig count decline near 30 percent, implying "significant" market share gains.

Schumm added he expects upside to the company's $2 billion cost synergies expectations related to the Baker Hughes merger.

Bottom line, despite the stock rising 22 percent year-to-date (while outperforming major indices), the analyst is still recommending investors add to positions on weakness.