Market Overview

Raymond James: Halliburton's Performance Will Improve This Year, Into 2020

Raymond James: Halliburton's Performance Will Improve This Year, Into 2020

Halliburton Company’s (NYSE: HAL) first-quarter performance likely represents a trough and results could improve in the back half of 2019 and into 2020 — not just in the U.S., but across all geographies, according to Raymond James.

The Analyst

Raymond James’ Praveen Narra maintains a Strong Buy rating on Halliburton with an unchanged $45 price target.

The Thesis

While the U.S. rig count has continued to decline, completions activity has improved significantly since December, Narra said in a Monday note. 

Halliburton’s first-quarter results are likely to be impacted by weather and seasonality, and the company’s U.S. contracting and procurement segment could continue to face pricing pressure early in the first quarter, the analyst said. The analyst expects C&P revenues to decline 8.8 percent sequentially and margins to contract by 350bps in the first quarter, he said. 

Things should start improving from the second quarter onward, with a modest 90bps improvement in the U.S. C&P margins and 0.7-percent sequential revenue growth, Narra said. 

The U.S. rig count on the drilling and evaluation side is expected to decline through the first half of 2019, the analyst said. He projects a 9.3-percent decline in first-quarter D&E revenues, with a 122bps contraction in margins. 

In the international markets, there are early signs of spending growth, according to Raymond James.

Revenue growth in the international C&P market is estimated to be a healthy 5.4 percent, although this is still lagging growth in the D&E segment, Narra said. 

Price Action

Halliburton shares were up more than 2 percent at $29.89 at the time of publication Monday. 

Related Links:

Benzinga's Top Upgrades, Downgrades For March 11, 2019

Raymond James Stays Bullish On Halliburton, Lowers Estimates On Tough 2019 Forecast

Latest Ratings for HAL

Oct 2019DowngradesBuyHold
Oct 2019MaintainsOutperform
Oct 2019MaintainsBuy

View More Analyst Ratings for HAL
View the Latest Analyst Ratings

Posted-In: Praveen Narra Raymond JamesAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (HAL)

View Comments and Join the Discussion!

Latest Ratings

NXTCBank of AmericaReiterates89.0
RNRJP MorganAssumes173.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

For Cannabis Industry Investment, 2018 Was Terrific But 2019 Looks Even Better

Mid-Morning Market Update: Markets Open Higher; Cal-Maine Earnings Top Expectations