Halliburton's 2Q15 Earnings: Must-Know Takeaways
(Continued from Prior Part)
Wall Street forecasts for Halliburton
In this series, we’ve seen that Halliburton’s (HAL) stock has reacted positively following its 2Q14 earnings release on July 20, 2015. Now let’s look at Wall Street analysts’ forecasts for Halliburton following the release.
Consensus rating for Halliburton
Approximately 75% of analysts tracking Halliburton (HAL) rate it a “buy” or some equivalent. Approximately 23% rate the company a “hold” or an equivalent, while just 2% of analysts recommend a “sell.”
In comparison, approximately 71% of analysts tracking Baker Hughes (BHI) rate it a “buy” or some equivalent and approximately 71% of analysts tracking Cameron International (CAM) rate it a “buy.”
Analysts’ recommendations
When it comes to individual recommendations, Robert W. Baird & Co. and Capital One Securities, two independent research firms, give Halliburton target prices of $49 and $51, respectively. Halliburton currently trades near $42, implying 17% and 22% respective returns for the next 12 months.
Investment bank J.P. Morgan (JPM) gives Halliburton one of the highest target prices. It has a 12-month target of $56 for Halliburton. This implies a ~34% return from Halliburton over the next 12 months.
Barclays (BRC), another investment bank, gave Halliburton a one-year target price of $52, which implies a 24% return over the next 12 months.
RBC Capital Markets, a Canadian investment bank and part of the Royal Bank of Canada, gives Halliburton (HAL) a target price of $56. This target implies a 34% return over a one-year period at the current price.
Schlumberger (SLB) is the Market Vectors Oil Services ETF’s (OIH) largest holding. Along with HAL and BHI, the three companies account for 44.5% of OIH.
Learn more about the oil & gas industry on Market Realist’s Energy and Power page.
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