The price target for Halliburton Company was also bumped
Halliburton Company (NYSE:HAL) is now an Alpha Generator in the eyes of FBR Capital analyst Mr. Thomas Curran. He is of the view that the risk associated with Halliburton Company has been significantly reduced and the company’s recent hike in production and improvement in oil pricing has made the stock a risk free opportunity at current trading levels. Haliburton has replaced Contract Drilling in the Alpha generator list and has also earned itself a price target raise.
The analyst added that Contract Drilling had gained about 17% in value since its addition to Alpha Generator list. As it stands the risk/reward profile of Halliburton Company has become far more attractive than that of Contract Drilling and thus the analyst decided to swap the two. Contract Drilling is still a very lucrative stock according to FBR analyst but Haliburton’s upside potential is far higher.
From here onwards until the mid of fiscal year 2017, Halliburton will start to capitalize on better than expected frac pricing in North America and will make better use of its technological advantage over its peers. In the eyes of the analyst, this makes for one of the most attractive margin profiles in the industry for the next year. The analyst expects Halliburton to perform strongly in two of the healthiest regions for the oil industry, namely Middle East and Caspian.
The analyst concluded his report with remarks that Halliburton Company has, without any doubt, one of the best outlooks in the oil field services industry and the company’s balance sheet has come a long way from the status of “leverage constrained,” so much that we now believe that the company is ready to make a strategic move for the acquisition of another company.
The analyst reaffirmed an Outperform rating and raised the price target to $58 from his prior $53. The analyst ratings for the stock are 18 Buy, 18 Outperform, three Hold, one Underperform and one Sell. The stock currently trades at a price of $47.24 and has gained 0.47% since the open of the market.