Haliburton: Sell-off Overdone

Forbes.com, Fall, 2011. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Following Halliburton’s third quarter 2011 results, Canaccord Genuity energy analyst Scott Burk maintained his BUY rating and price target on the company, stating that, “. . .[the] sell-off was overdone and [we] view HAL as inexpensive even based on our lower-than-consensus estimates.”

Mr. Burk added, “We think Halliburton is the best positioned competitor to gradually gain market share internationally and approach the much higher valuation multiples enjoyed by Schlumberger. We believe a gradual improvement in valuation multiples would allow HAL to outperform over the longer term, which makes it our favorite idea for a long-term buy-and-hold strategy.”

Mr. Burk’s current price target on HAL is $46.00