Merger related issues outweigh potential for greater synergies in the oilfield services company, analysts' said.
"For Halliburton, risks of closing and revenue leakage related to its merger with Baker Hughes (BHI) outweigh potential for greater synergies or of a duopoly structure and we lower HAL's price target to $67 from $74," analysts' noted.
"BHI and Schlumberger Limited (SLB) are clearer beneficiaries-especially near term. We also think the merger is incrementally negative for weaker U.S. pressure pumpers as HAL can drive efficiency (=effective capacity) and share gain," analysts added.
Separately, 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, compelling growth in net income, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."