Market Overview

Bernstein Believes Halliburton Tender Offer Demonstrates More Confidence by Mgmt to Manage Spill Liabilities

Related HAL
S&P 500 Once Again Unable To Hold 2,000
Halliburton and Transocean Cleared Of Gross Negligence In 2010 Oil Spill
Making Money with Charles Payne: 8/27/14 (Fox Business)

Halliburton (NYSE: HAL) shares remain undervalued and should be priced at $54.60, according to Bernstein's Scott Gruber in a research note from Friday morning. The analyst's model is based on 14x 2014 EPS forecast of $3.90.

This $54.60 value is 11 percent higher than the upper end of the $42.60-$48.50 per share range of Halliburton's recent dutch auction.

Gruber believes the tender offer signifies Halliburton's confidence related to the end-market's demand for Halliburton shares and allows for greater share repurchase “power” compared to simply waiting for shares to appreciate.

Gruber also noted the tender offer indicates Halliburton is “more confident” that its Gulf oil liability is “manageable."

Gruber maintains his Market Perform rating and $54 price target on Halliburton, indicating a 15 percent further potential upside amid Friday's 4 percent intraday gain.

Latest Ratings for HAL

DateFirmActionFromTo
Jul 2014MacquarieMaintainsOutperform
Jul 2014Deutsche BankMaintainsBuy
Jul 2014JefferiesMaintainsBuy

View More Analyst Ratings for HAL
View the Latest Analyst Ratings

Posted-In: Analyst Color News Analyst Ratings

 

Related Articles (HAL)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters