The firm said it initiated coverage on the oilfield services company as it believes Halliburton's risk/reward is attractive at its current levels.
Oppenheimer said that Halliburton's stock has retreated around 40% in conjunction with the decline in oil prices, but added that it feels "the risk/reward is skewed very positively as the market is pricing in significant reductions in activity and, we think, taking a myopic view on the combination with Baker."
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"The proposed merger will create a more valuable entity that can more effectively compete with Schlumberger (SLB) internationally and will remove a major competitor from the marketplace," Oppenheimer said.
Shares of Halliburton are up 0.74% to $40.64 in pre-market trading this morning.
Separately, TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, attractive valuation levels, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."