HAL - Halliburton Schlumberger upped at HSBC as strong oil market bodes well

Halliburton (NYSE:HAL) +2% and Schlumberger (NYSE:SLB) +1% as HSBC upgraded the stocks to Buy from Hold, with respective price targets of $41.60 and $44.20 raised from $36.60 and $40.60, as shares have pulled back a bit from recent 52-week highs. Halliburton (HAL) is well placed to capitalize on the current oil price environment because of its higher exposure than peers to the North American oil market, HSBC analyst Abhishek Kumar said, adding the company should be able to weather challenges with commodity price induced inflation and supply side constraints. Schlumberger (SLB) also is well positioned to improve margins through price increases, Kumar said, and better medium-term visibility and improved earnings over the next 2-3 years should translate into higher free cash generation and increased shareholder returns through higher dividends and share buybacks. Schlumberger (SLB) is "one of the biggest beneficiaries of aggressive upstream spending plans and is expected to enjoy double-digit

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Halliburton, Schlumberger upped at HSBC as strong oil market bodes well