Even though Halliburton Company (NYSE:HAL) took a big hit after reporting its most recent quarterly results, Citigroup (NYSE:C) said the drop in price of 5 percent wasn't justified.
“Completions intensity trends remain strong in North America, volume (and eventually pricing gains) internationally should materialize in 2011, and drill bits should start turning again next year in the Gulf of Mexico. The stock still looks cheap at its 2011 EV/EBITDA of 6.5x compared to 9.1x, 7.5x, and 6.6x for SLB, WFT, and BHI, respectively,” Citigroup wrote in a note.
So with the fundamentals still in place, Citigroup said, “We have raised our price target to $47 from $42 solely on our higher estimates and HAL remains our top pick among the ‘big four' diversified service companies.”
Halliburton took more damage Tuesday, closing at $33.18, down $0.91, or 2.67 percent.
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