Halliburton "sector perform," target price reduced - update

01/07/08 - RBC Capital Markets

NEW YORK, January 7 (newratings.com) - Analysts at RBC Capital Markets maintain their "sector perform" rating on Halliburton Company (HAL), while reducing their estimates for the company. The target price has been reduced from $57 to $53.

In a research note published this morning, the analysts mention that the company’s frac business is likely to face pricing pressure in the US and may decline by 10%-15% in 2008. The US frac business contributes about 17% of Halliburton’s total revenues and more than 20% of the company’s operating income, the analysts say. The EPS estimates for 2008 and 2009 have been reduced from $3.12 to $2.96 and from $3.73 to $3.61, respectively.