Global Energy Demand And Natural Gas Transition Will Expand Services

Analysts have raised their fair value estimate for Halliburton from $26.54 to $27.04 per share. This change is attributed to improved revenue growth projections and positive momentum from recent sector developments.

Analyst Commentary

Recent Street research on Halliburton signals a mix of optimism for the company's future prospects and caution amid evolving sector dynamics. Analysts have adjusted their ratings and forecasts in response to shifting industry trends, company-specific developments, and global market activity.

Bullish Takeaways

• Bullish analysts see the company as a beneficiary of the accelerating "Power revolution" and note that advancements in AI are transforming the energy sector. This is positioning Halliburton for long-term growth opportunities.
• Several research professionals have issued positive outlooks and highlight that recent stock price weakness presents a favorable entry point for investors anticipating future upside.
• Upcoming updates regarding Halliburton's exposure to onsite power generation are viewed as potential catalysts for share appreciation in the next quarter.
• Despite some recent estimate reductions, the majority of analysts maintain positive or buy ratings. Some have set price targets significantly above current levels, suggesting confidence in the company’s ability to execute and recover margin performance.

Bearish Takeaways

• Bearish analysts point to ongoing margin contraction as a key concern impacting the company's near-term valuation outlook.
• Price targets have been trimmed by some firms due to revised estimates following weaker-than-expected quarterly results and guidance for slower activity in core international and North American markets.
• Lowered projections for 2025 and 2026 earnings per share suggest caution about Halliburton's pace of recovery in a challenging sector environment.
• Recent modeling updates that incorporate lower EBITDA multiples reflect tempered expectations for the company's medium-term financial performance.

What's in the News

• Halliburton has recently implemented significant layoffs, with at least three business divisions experiencing workforce reductions of 20% to 40%, according to Reuters.
• The company was awarded a five-year contract by ConocoPhillips Skandinavia AS to deliver comprehensive well stimulation services in the North Sea. The agreement includes optional extension periods and advanced digital fracturing solutions.
• Halliburton announced a contract to supply completions and downhole monitoring services for the Northern Endurance Partnership's carbon capture and storage system in northeast England. This partnership supports large-scale CO2 transportation and storage infrastructure.
• As part of its ongoing share repurchase initiative, Halliburton repurchased nearly 12 million shares between April and June 2025, bringing total buybacks to over 304 million shares since 2006.

Valuation Changes

• Fair Value Estimate has risen slightly from $26.54 to $27.04 per share, reflecting updated positive expectations for the company.
• Discount Rate has decreased from 8.47% to 8.24%, indicating an incremental decline in the required rate of return for investors.
• Revenue Growth projections have shifted from a small negative figure (−0.20%) to a modest positive outlook (0.26%), suggesting improved expectations for future sales performance.
• Net Profit Margin has declined marginally from 9.01% to 8.90%, pointing to slightly lower anticipated profitability.
• Future P/E Ratio has increased from 13.25x to 13.40x, denoting a minor upward revision in expected future earnings multiples.