HAL - Halliburton rated Buy at Benchmark after lagging its business mix peer group

2023-04-03 12:52:22 ET

Halliburton ( NYSE: HAL ) +7.1% in Monday's trading as Benchmark Company initiates coverage with a Buy rating and $50 price target, saying the shares have been trading more like a pure U.S. frac company than a global diversified oil services company.

Halliburton ( HAL ) stock has "substantially underperformed its business mix, earnings power and large-cap peer group in a classic case of guilty until proven innocent," Benchmark's Kurt Hallead wrote.

Oilfield services executives expect exploration and production companies will slow - not collapse - natural gas directed activity in the Haynesville shale, which Hallead said at most would lead to a drop of 10-15 frac crews, mostly from lower end Tier 2 diesel crews.

Electric fleets and dual fuel fleets have operational and cost efficiencies that Tier 2 diesel cannot match, Hallead also noted.

Halliburton ( HAL ) shares are shooting higher Monday following OPEC's surprise production cut announced over the weekend .

For further details see: