UPDATE: UBS Securities Reiterates On Halliburton On Raised Estimates
In a report published Tuesday, UBS Securities analyst Angie Sedita reiterated a Buy rating on Halliburton (NYSE: HAL), and raised the price target from $80.00 to $87.00.
In the report, UBS Securities noted, “We are raising our 2015 EPS ests by 7.5% and 2% in 2014E. Our forecasts reflect slightly higher N.Am revenue growth (of 15% y/y, similar to '14 growth rate) and only slightly higher margins forecasts (20% '14 exit rate and 21.4% full year ‘15E). We believe both of these assumptions are conservative and upside still exists. We essentially left our '15 int'l forecasts unchanged.
"Strategically, we believe that HAL is taking all of the right steps. HAL will accelerate its frac capacity additions (adding 2nd production shift, +25%-30% increase to current run-rate). The pressure pumping industry, including its largest peer, has already been adding new frac capacity since early ‘14. In our view, HAL has been highly conservative to wait this long before accelerating the Q10 frac pump roll-out and risks losing market share by waiting any longer. HAL continues to be our Top Pick. Given its strengths its logistics and execution we believe it offers the highest North American earnings leverage as demonstrated in Q2.”
Halliburton closed on Monday at $71.00.
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