Halliburton's Market Positioning And Global Spending Expectations Bolster Revenue And Margin Expansion: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Susquehanna analyst Charles P. Minervino has reiterated a Positive rating on Halliburton Company (NYSE:HAL), raising the price target to $44 from $42. Halliburton reported a 14.3% YoY revenue growth for Q2 FY23, reaching $5.798 billion. The results were driven by improved U.S. drilling activity, frac pricing, and margin expansion. Despite a moderate downtick in North American activity, robust international performance offset the losses. The analyst expects the international business to grow revenue and expand margins over the next few years due to global spending expectations and HAL's favorable market positioning.
July 20, 2023 | 6:44 pm
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Halliburton's Q2 FY23 revenue grew by 14.3% YoY, driven by improved U.S. drilling activity, frac pricing, and margin expansion. Despite a moderate downtick in North American activity, robust international performance offset the losses. The analyst expects the international business to grow revenue and expand margins over the next few years due to global spending expectations and HAL's favorable market positioning.
The analyst's positive rating and increased price target indicate a bullish outlook for Halliburton. The company's strong Q2 FY23 performance, driven by improved U.S. drilling activity, frac pricing, and margin expansion, supports this outlook. Despite a moderate downtick in North American activity, the robust international performance is expected to offset the losses and drive future growth. This is further bolstered by global spending expectations and Halliburton's favorable market positioning.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100