Analyst Actions: Halliburton Keeps Outperform, Target Lifted $2 at Credit Suisse; Shares Up Near 2%, Nearer 52 Week Highs
Not Just a NAM OFS Company. "HAL delivered leading YoY international revenue growth for the 5th consecutive quarter (+14% YoY). 2Q13 international op income was 48% of EBIT. Eastern Hemisphere also grew at the top of the peer group, YoY revenue and EBIT were +16% and +23%, respectively, which even outpaced SLB's impressive Eastern Hemisphere performance of +12% revs and +18% EBIT and BHI's +12% rev and +9% EBIT YoY. HAL mentioned a few recent wins that will help propel its strength in the region including a $500mm fluids contract in
Malaysia, an offshore cementing contract, and a $100mm five year contract in the North Sea. We project Eastern Hemisphere YoY growth to be 20% for sales and 27% for EBIT in 3Q13."
Long Term View Intact; Buy It. "We reiterate our Outperform rating and are increasing our TP to
$55 from $53; our target continues to be based on 6.5x our 2014 EBITDA estimate (which is now $8.1B). HAL continues to trade at a discount to its closest peer: 29% and 24% on EV/Ebitda and P/E respectively, a discount we do not believe is justifiable given HAL's superior returns and international revenue growth."
Price: 45.90, Change: +0.82, Percent Change: +1.8