BUZZ - Market Update: Analysts Maintain Optimistic Outlook After Halliburton Releases 2027 Outlook

October 21 - ** U.S. oilfield services provider Halliburton (HAL.N) predicted on Tuesday that revenue in 2027 will achieve mid-single-digit growth, expecting that efforts in the Middle East, which has been affected by war, to restore energy production and rebuild inventories will support demand for oilfield equipment.

** On Tuesday, HAL’s third-quarter profit and revenue both exceeded market expectations, and its share price closed up 1.9%.

Recovery in the North American market is not a necessary condition for growth in 2027.

** Jefferies (maintains “Buy” rating) raised its price target from $47 to $48, considering the 2027 performance framework “achievable.” Its assumptions are relatively balanced, including flat North American revenue, continued strength in Middle East business, and no significant price increases.

** TD Cowen (“Buy”) raised its price target from $47 to $48; it said HAL’s 2027 outlook is intended to show confidence in margin expansion and reflects that growth does not need to rely on North American (NAm) business.

** “Management is optimistic about the outlook for North American fracturing business, but it is not a necessary condition for achieving the performance guidance,”—TD Cowen

** RBC (maintains “Outperform” rating) raised its price target by $1 to $46; it said HAL “benefitted from its performance guidance,” with its fourth‐quarter core profit forecast suggesting 7% quarter-on-quarter growth, and its 2027 outlook alleviated market concerns over weak performance in that quarter.

** However, the firm added that HAL’s “share of international revenue is relatively low compared to peers, so if the North American market (NAM) remains flat, this could become a drag on growth.”

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