Halliburton (HAL) Stock Forecast & Price Target

Halliburton's positive outlook is supported by anticipated revenue growth of $2.5-3 billion over the next 3-5 years due to advancements in directional drilling, well intervention, and artificial lift technologies, alongside expanding unconventionals market. The company reported a sequential revenue increase in international segments, particularly notable in the Eastern Hemisphere, which is projected to grow 3-5%, contributing to its strategic goal of enhancing service pricing and utilization for improved margins. Additionally, Halliburton's commitment to expanding its electric frac equipment, with the ZeusTM e-fleets expected to represent 50% of total horsepower by 2025, alongside the successful adoption of its Octiv® Auto Frac technology, further strengthens its operational efficiencies and competitive positioning.

Halliburton's financial reports indicate a concerning trend for the company's performance, particularly in its Latin American segment, which experienced a revenue decline of 9.5% from the previous quarter and a year-over-year decrease of 7.5%, contributing to an overall revenue slip of 1.5% sequentially and 2.2% year-over-year. The company's EBITDA matched projections but decreased 4.0% sequentially and 8.1% compared to the same quarter the previous year, reflecting pressures on profitability despite maintaining a relatively stable adjusted EPS. Looking ahead, guidance suggests a low to mid-single-digit decline in North American revenue for FY25, alongside a flat international outlook due to weak performance in Mexico, casting a negative outlook for Halliburton's growth trajectory.