AnalystConsensusTarget updated the narrative for HAL

Halliburton's analyst price target has been raised from $27.04 to $29.46 as analysts point to the company's strong quarterly performance, increasing profit margins, and potential catalysts in power generation and data center projects.

Analyst Commentary

Bullish analysts have responded positively to Halliburton's latest quarterly performance and outlook, highlighting several drivers for potential upside in the company's valuation and growth prospects.

• Several price target increases reflect confidence in Halliburton's ability to outperform, with stronger-than-expected earnings and improved financial guidance through 2026 cited as key factors.
• There is optimism about Halliburton's expanding role in international power generation and potential data center projects, which are viewed as significant catalysts for future growth and margin expansion.
• The company's management is recognized for maintaining a disciplined focus on capital efficiency and returns, which has contributed to sustained profit margin improvements.
• Halliburton is considered a distinctive option for investors interested in the growing demand for data centers and AI infrastructure. Analysts note that certain assets, such as its VoltaGrid stake, may not be fully acknowledged by the market.

• Some analysts remain cautious and retain a neutral rating, even while acknowledging recent operational outperformance and higher guidance.
• Concerns persist that, despite recent estimate adjustments and improvements, Halliburton remains sensitive to volatility in energy markets and global commodity pricing.
• Certain positive expectations regarding the company's involvement in new power generation projects depend on successful execution and additional clarity from forthcoming updates.

What's in the News

• Halliburton has laid off staff across at least three business divisions in recent weeks, with reductions ranging from 20% to 40% of employees. The total scope of layoffs remains unclear (Reuters).
• Halliburton secured a framework agreement with Shell to provide umbilical-less tubing hanger installation and retrieval services using its Remote Operated Control System (ROCS) technology, following successful deployment in deepwater projects.
• The company continued its share repurchase program, buying back over 11.3 million shares for approximately $249.79 million between July and September 2025. Total buybacks since 2006 amount to over 33% of outstanding shares.
• Petrobras awarded Halliburton multiple contracts to deliver stimulation, intelligent completions, and safety valves in Brazil's deepwater fields, with projects set to begin in 2026.
• Halliburton partnered with Aker BP to execute the first operation using the Enhanced Remote Operated Control System (eROCS) and Optime Tubing Hanger Orientation System. This marks a breakthrough in subsea control and completions on the Norwegian continental shelf.

Valuation Changes

• Consensus Analyst Price Target has increased from $27.04 to $29.46, indicating a more optimistic outlook on future performance.
• Discount Rate has fallen slightly from 8.24% to 8.16%, reflecting marginally lower perceived risk in the valuation assumptions.
• Revenue Growth estimates have increased significantly from 0.26% to 1.37%, suggesting higher expectations for future sales expansion.
• Net Profit Margin has edged up from 8.90% to 8.94%, signaling expectations of modestly enhanced profitability.
• Future P/E ratio has decreased slightly from 13.40x to 13.38x, which points to a minor adjustment in market valuation relative to projected earnings.