Deutsche Bank Believes Potential BHI Acquisition Would Present Huge Opportunities and Challenges for Halliburton Company

In a report published Friday, Deutsche Bank analyst Mike Urban reiterated a Buy rating and $69.00 price target on

. In the report, Deutsche Bank noted, “The Wall Street Journal is reporting (and BHI later confirmed) that HAL is in talks to acquire BHI. If completed, it would combine the #2 and #3 players and create a company with over $55B in revenue, more than $70B in equity market cap and $80B in enterprise value based on today's close. Upon completion, it would shift the market dynamic back in favor of the service industry, which has been facing a decline in market power in recent years as operators grew larger in relative terms and more recently in the face of declining oil prices. It would also significantly narrow the gap between BHI/ HAL and long-time market leader SLB.” Halliburton Company closed on Thursday at $53.79.