NEW YORK (TheStreet) -- Halliburton (HAL) shares closed trading up 2.6% to $59.08 on Monday.
The bump came on the heels of a note from Sterne Agee analyst Stephen Gengaro. Gengaro wrote that a change from the inhibiting weather conditions that hurt the oil services industry in the first quarter would lead to a solid rise in business in the second and third quarters this year.
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The Sterne Agee note cites reports of low well counts during the first quarter, including a 2.5% sequential decline in well counts.
"Difficult conditions across the U.S. negatively impacted efficiency at well sites during Q1. The problems included weather-related logistical difficulties and freezing temperatures that limited the ability to work," Gengaro said in the note.
However, the seasonal change of those conditions "could lead to a solid rise in Q2 and Q3 demand for completion services, including pressure pumping, coiled tubing and proppants," the note said.
Halliburton is set to release its quarterly earnings report on April 21.
TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."