Analysts at Jefferies lowered estimates on Halliburton Company (
) on Tuesday as it is preparing for more conservative expectations
in global spending next year.
The analysts lowered 2013 EPS of HAL to $3.00, down from $3.15.
The firm also cut 2014 EPS from $4.45 to $4.25. Jefferies now see
shares reaching $42, down from $45. The new valuation is +25%
upside to Monday's closing price of $33.54.
"We ease back our revenue and EBIT growth assumptions for HAL
primarily to reflect broader conservatism - Jefferies' global
upstream capex outlook, as compiled from our oil company coverage
expectations, is for flat yoy capex spending in 2013, including 2%
growth outside of North America (non-NAM)," said Jefferies analyst
"We are candidly a bit more optimistic than that for total
upstream spending but we nevertheless believe some additional
conservatism versus our recently published estimates is warranted,"
Halliburton shares were down 49 cents, or -1.46%, in premarket
trading on Tuesday.
The Bottom Line
Shares of Halliburton (
) have a 1.07% dividend yield, based on last night's closing stock
price of $33.54. The stock has technical support in the $30 price
area. If the shares can firm up, we see overhead resistance around
the $36-$37 price levels.
Halliburton Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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