Susquehanna analyst Charles P. Minervino reiterated a Positive rating on Halliburton Company (NYSE:HAL), raising the price target to $44 from $42.

Halliburton reported second-quarter FY23 revenue growth of 14.3% year-over-year to $5.798 billion, missing the consensus. Total cash flows provided by operating activities year-to-date totaled $1.17 billion, compared to $326 million a year ago.

The results were driven by broad-based solid performance across both C&P and D&E.

The key catalysts for HAL were - improved U.S. drilling activity, frac pricing, and margin expansion. 

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By geography, a moderate downtick (-2.5% Q/Q) in North America was more than offset by robust international performance (+6.5% Q/Q), Minervino adds. 

The analyst expects a pause in North American activity likely to extend into 2H23, with near-term growth muted. 

The analyst sees a robust international story to help drive EPS improvement. 

Given the global spending expectations, momentum in offshore, and HAL's favorable market positioning, the international business will grow revenue and expand margins over the next few years, notes the analyst. 

Minervino remains confident that the current environment, comprising tight equipment capacity and strong customer demand, will drive earnings growth and free cash flow for HAL. 

Based on the favorable trends, the analyst raised 3Q23/2023 EPS estimates to $0.77/$3.03 (up from $0.73/$2.94 previously). 

Minervino now expects total revenue for 3Q23/2023 of $5.9 billion/$23.3 billion.

Price Action: HAL shares are trading lower by 2.66% to $36.02 on the last check Thursday.