Rash Of Positive Analyst Comments Should Power Halliburton Higher

| About: Halliburton Company (HAL)

Halliburton (NYSE:HAL) has been on a roll since trading at $30 in November. Recently, it has picking up a lot of positive comments from analysts and the shares look poised to move still higher.

This week's positive analyst comments on Halliburton:

  • Deutsche Bank just reiterated its buy rating and raised its price target to $54 a share from a previous $51 a share.
  • Monday, BMO Capital Markets raised its price target on Halliburton to $52 a share from $47 a share previously.
  • Also Monday, Dahlman Rose reiterated its "Buy" rating and raised its price target to $50 a share from $47 a share.
  • Finally, J.P. Morgan just raised its price target to $45 a share from $42 a share.

Halliburton Company provides various products and services to the energy industry for exploring, developing, and producing oil and natural gas worldwide.

4 reasons HAL has upside from $40 a share:

  1. Consensus earnings estimates for both FY2013 and FY2014 have ticked up over the last week. The shares are priced just a little over 10x forward earnings, a discount to its five year average (14.2).
  2. The median price target held by the 27 analysts that cover the stock is $47 a share.
  3. Even after the stock's recent run, HAL still trades in the bottom third of its five year valuation ranged based on P/E, P/S, P/CF and P/B.
  4. The company stated recently that it believes that the 4th quarter marked the bottom for North American margins. Margins going forward should increase and be supportive of a higher stock price.

Disclosure: I am long HAL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.